Question: You initially invested $ 8 0 , 0 0 0 in a project. If the present value of the cash flows of that project is

You initially invested $80,000 in a project. If the present value of the cash flows of that project is $120,000,what is the NPV of the project?
$40,000$200,000$20,000
None of the answers are correct

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

2.1 Assuming that Mortgage A is selected, calculate the net present value of the investment. Use the cost of equity that you calculated in Question 1.1 as the appropriate discount rate. Round your...

Q:

Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $580,000 and has a present value cash flows of $1,500,000.0. Project 2 requires an initial...

Q:

ABN Company is considering a 4-year project with some information (see the table below) from a Pro Forma income statement. Unit: (In Thousands) Year 1 2 3 4 Sales 6,000 6,000 6,000 6,000 Variable...

Q:

Question 3 ABN Company is considering a 4-year project with some information (see the table below) from a Pro Forma income statement. Unit: (In Thousands) Year 1 2 3 4 Sales 6,000 6,000 6,000 6,000...

Q:

Question 3 ABN Company is considering a 4-year project with some information (see the table below) from a Pro Forma income statement. Unit: (In Thousands) Year 1 2 3 4 Sales 6,000 6,000 6,000 6,000...

Q:

Capital Budgeting General Information Kim Holland, Chief Financial Officer for the Global Manufacturing, Inc., has just completed summarizing the financial aspects of four capital investment projects...

Q:

1) Which of the following is an advantage of decentralization? A) Managers' motivation and retention can be increased by empowering segment managers to make decisions. B) Certain costs of activities...

Q:

1) Which of the following is an advantage of decentralization? A) Managers' motivation and retention can be increased by empowering segment managers to make decisions. B) Certain costs of activities...

Q:

1) Which of the following is an advantage of decentralization? A) Managers' motivation and retention can be increased by empowering segment managers to make decisions. B) Certain costs of activities...

Q:

1) Which of the following is an advantage of decentralization? A) Managers' motivation and retention can be increased by empowering segment managers to make decisions. B) Certain costs of activities...

Q:

SECTION A: This is a compulsory question (Total 40 marks) Question 1 Marli Limited manufactures security equipment used extensively by the financial services industry. The company incurs significant...

Q:

Sekwanele Ltd is a manufacturing company in Windhoek, Namibia, producing and selling steel beams. On 1 January 2019 the company acquired a property with the following details:...

Q:

DEPENDENT EID: FName: UID Gender Relationship is associated with DEPARTMENT Map the following ER Model to the Relational Model DID: UID Name: Budget Bboooda hires has is hired by manages is managed...

Q:

Bank charges on letters of credit will depend on the Multiple Choice exporter's creditworthiness. exporter's means of finance. size of the transaction. time taken to approve the sale. Prev Nepst 5 7...

Q:

hat is the diffrence between rate and frequency data collection? Rate is taking data on whether or not a certain behavior occurred in an interval or not, and frequency is taking data on whether the...