A developer is building a project that requires two cash investments in the amount of $5,000 each, one today and one in 3 years. In exactly 8 years, the project will then generate a cash flow of $15,000. If the firm can borrow external funds at 2.5%, what is the NPV for this project? O $2,668 O $2,711 O $2,788

A developer is building a project that requires two cash investments in the amount of $5,000 each, one today and one in 3 years. In exactly 8 years, the project will then generate a cash flow of $15,000. If the firm can borrow external funds at 2.5%, what is the NPV for this project? O $2,668 O $2,711 O $2,788

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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