Question: Mega Dynamics is considering a project that has the following cash flows: Year Project Cash Flow 0 ? 1 $2,000 2 3,000 3 3,000 4

  1. Mega Dynamics is considering a project that has the following cash flows:

    Year

    Project Cash Flow

    0

    ?

    1

    $2,000

    2

    3,000

    3

    3,000

    4

    1,500

    The project has an IRR of 17% . The firm's cost of capital is 11 percent. What is the project's net present value (NPV)?
    A.

    $765.91

    B.

    $843.81

    C.

    $3,765.91

    D.

    $1,761.32

    E.

    $1,049.80

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