A project with an initial invest of RO25000 having a estimated life of 5 years and a scrap value of RO 2000 has the following cash inflows. 2 3 4. 5000 10000 12000 4000 3000 What will be the NPV with a discount rate of 7% as given below 1 2 4 5 0.9345790.8734390.8162980.7628950.712986 O a. 3353.51 O b. 4072.04 O c. 4819.37 O d. All the options are wrong

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
16
A project with an initial invest of RO25000 having a estimated life of 5 years and a scrap value of RO 2000
has the following cash inflows.
3
4.
5
ut of
5000
10000
12000
4000
3000
What will be the NPV with a discount rate of 7% as given below
1
4
0.9345790.8734390.8162980.7628950.712986
O a. 3353.51
O b. 4072.04
Oc. 4819.37
O d. All the options are wrong
Transcribed Image Text:16 A project with an initial invest of RO25000 having a estimated life of 5 years and a scrap value of RO 2000 has the following cash inflows. 3 4. 5 ut of 5000 10000 12000 4000 3000 What will be the NPV with a discount rate of 7% as given below 1 4 0.9345790.8734390.8162980.7628950.712986 O a. 3353.51 O b. 4072.04 Oc. 4819.37 O d. All the options are wrong
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Capital Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education