A project requires an immediate investment of $14,000 for the purchase and installation of equipment. The project is expected to generate after-tax cashflows in the amount of $5,000 at the end of each of the next four years. The appropriate discount rate is 10%.  What is the net present value (NPV) of the project?  [Select the best answer, please.] $      815 $      825 $   1,850                               $   2,150 $ 15,850

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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  1. A project requires an immediate investment of $14,000 for the purchase and installation of equipment. The project is expected to generate after-tax cashflows in the amount of $5,000 at the end of each of the next four years. The appropriate discount rate is 10%.  What is the net present value (NPV) of the project?  [Select the best answer, please.]
  2. $      815
  3. $      825
  4. $   1,850                     
  5.          $   2,150
  6. $ 15,850
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