Question: My INC is considering a project that requires an initial investment of $1 million. It will provide an annual cash inflow of $150,000 for the

My INC is considering a project that requires an initial investment of $1 million. It will provide an annual cash inflow of $150,000 for the first six years, $200,000 per year for Year 7 through Year 9, and $100,000 per year for Year 10 and Year 11. What is the project's net present value if the firms required rate of return is 10%?

Multiple Choice

  • $8,561

  • $9,320

  • $7,645

  • $5,750

  • $6,882

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