Asked by
yordanka licea
on Dec 09, 2024Verified
A project has an initial cash outlay of $16,500. Cash inflows are $5,200 in year 1, $6,800 in year 2, and $8,100 in year 3. What is the net present value if an 8.30% discount rate is applied to this project?
A) $333.33
B) $466.04
C) $475.88
D) $574.76
E) $601.13
Initial Cash Outlay
The total amount of money required upfront to initiate a project, investment, or venture.
Discount Rate
This is the interest rate used in DCF evaluations to establish the current value of expected future cash inflows.
- Acquire comprehension of the notion and mathematical evaluation of Net Present Value (NPV).
Verified Answer
RD
Learning Objectives
- Acquire comprehension of the notion and mathematical evaluation of Net Present Value (NPV).
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