A 17-year project has a cost of $900,000 and has annual cash flows of $140,000 in years 1-8, and $300,000 in years 9-17. The company's required rate is 11%. Given this information, what is the NPV of the project?   Question 7 options:   A)  $0.64 million   B)  $0.38 million   C)  $0.54 million   D)  $0.43 million   E)  $0.50 million

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A 17-year project has a cost of $900,000 and has annual cash flows of $140,000 in years 1-8, and $300,000 in years 9-17. The company's required rate is 11%. Given this information, what is the NPV of the project?
 

Question 7 options:

 

A) 

$0.64 million
 

B) 

$0.38 million
 

C) 

$0.54 million
 

D) 

$0.43 million
 

E) 

$0.50 million
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