Question: Best Pty Ltd is considering a project. The project has an initial investment of $450,000, with annual positive cash flows of $160,000 for four years.

Best Pty Ltd is considering a project. The project has an initial investment of $450,000, with annual positive cash flows of $160,000 for four years. The required rate of return on projects is 5%. What is the Net Present Value (NPV) of the project?

Select one:

a.$-318 496

b.$ 262 288

c.$ 567 360

d.$ 117 360

e.$-318 368

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!