Question: QUESTION 7 Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow

QUESTION 7

Project

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Cash Flow

Cash Flow

Cash Flow

Cash Flow

Cash Flow

Cash Flow

A

-14000

6000

6000

6000

6000

6000

B

-15000

7000

7000

7000

7000

7000

C

-18000

12000

2000

2000

2000

2000

The cash flows for three projects are shown above. The cost of capital is 9.5%. The net present value (NPV) of project A is ________.

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