Question: 17. ABC Inc. is considering a project that has the following cash flows: Year 0 1 2 3 4 Cash Flows -$1,000 $400 $300 ?

17. ABC Inc. is considering a project that has the following cash flows:

Year

0

1

2

3

4

Cash Flows

-$1,000

$400

$300

?

$200

It takes 2.5 years to recover the initial cash outlays. The firms cost of capital is 15%. What is the projects NPV?

____

A) $83.5

B) $92.6

C) $105.5

D) $120.0

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