A project will require an initial outlay of $2000 and will result in the following cash inflows in the years shown. If the cost of capital is 3%, what is the NPV of the project? a. $321 Ob. $388 O c. $318 O d. $460 Year 2 Cash Flow $770 $880 $810

A project will require an initial outlay of $2000 and will result in the following cash inflows in the years shown. If the cost of capital is 3%, what is the NPV of the project? a. $321 Ob. $388 O c. $318 O d. $460 Year 2 Cash Flow $770 $880 $810

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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Question

A project will require an initial outlay of $2000 and will result in
the following cash inflows in the years shown. If the cost of
capital is 3%, what is the NPV of the project?
a. $321
Ob. $388
O c. $318
O d. $460
Year
2
Cash Flow
$770
$880
$810

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