Question: The project is expected to cost $10,000 today and expected to provide the same amount of cash inflows of $Z for the next four years.

  1. The project is expected to cost $10,000 today and expected to provide the same amount of cash inflows of $Z for the next four years. Assuming the cost of capital is 10% and its IRR is 12%, what is the NPV of this project?

WACC: 10.00%

Year

0

1

2

3

4

Cash Flows

-$10,000

$Z

$Z

$Z

$Z

$436,27

-$2075.35

$3,154.71

-$419.04

None of the above

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