Question: Suppose Extensive Enterprisess CFO is evaluating a project with the following cash inflows. She does not know the projects initial cost; however, she does know

Suppose Extensive Enterprisess CFO is evaluating a project with the following cash inflows. She does not know the projects initial cost; however, she does know that the projects regular payback period is 2.5 years.

Year

Cash Flow
Year 1 $350,000
Year 2 $500,000
Year 3 $450,000
Year 4 $450,000

If the projects weighted average cost of capital (WACC) is 9%, what is its NPV?

$333,215

$283,233

$299,894

$366,537

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