Which of the following values comes closest to the net present value of a project that...

 

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Which of the following values comes closest to the net present value of a project that requires an initial investment of $250 and produces cash flows of $60 per year for 10 consecutive years beginning at the end of year 5 (the cash flows go from the end of year 5 through the end of year 14)? The required rate of return is 10%? O A. NPV = $1.81 OB. NPV = $119.67 O C. NPV = $13.44 OD. NPV = $350 O E. NPV = -$13.44 Which of the following values comes closest to the net present value of a project that requires an initial investment of $250 and produces cash flows of $60 per year for 10 consecutive years beginning at the end of year 5 (the cash flows go from the end of year 5 through the end of year 14)? The required rate of return is 10%? O A. NPV = $1.81 OB. NPV = $119.67 O C. NPV = $13.44 OD. NPV = $350 O E. NPV = -$13.44

Answer rating: 100% (QA)

The right option is A NPV 181 Explanation Given Statement showing Year O 1 2 h 41 S 6 7 f b 1... View the full answer