Question: Info 1: Use for the following THREE problems: Uncle Cosmo plans to build a factory. Its expected cash flows are described by the following table.

Info 1:

Use for the following THREE problems:

Uncle Cosmo plans to build a factory. Its expected cash flows are described by the following table. Required return is 11%.

Year

Cash Flow

0

(2,345)

1

800

2

635

3

787

4

942

5

175

6

52

  1. What is the projects NPV?

Select one:

a. $895

b. $219

c. $175

d. -$571

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