A company is considering an investment that costs $50,000 today. The investment will generate cash inflows of $12,000 per year for 6 years. The company's required rate of return is 8%. What is the Net Present Value (NPV) of the investment? Should the company accept the investment based on NPV? OPTIONS: A) $5,124 B) $7,124 C) $8,124 D) $10,124
A company is considering an investment that costs $50,000 today. The investment will generate cash inflows of $12,000 per year for 6 years. The company's required rate of return is 8%. What is the Net Present Value (NPV) of the investment? Should the company accept the investment based on NPV? OPTIONS: A) $5,124 B) $7,124 C) $8,124 D) $10,124
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
Section: Chapter Questions
Problem 1PS
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