Your firm is considering investing in a project that will require an initial outlay of $10,000. You expect the project to have an operating life of four years. You expect it to generate the following cash flows: (1) $3,000in the first year, (2) $4,000 in the second year, (3) $2,500 in the third year, and (4) $2,000 in the final year.Assuming that your firm requires 8% returns on such investments, what is the net present value of the project?O $59.29O $139.05-$338.23-$313.17

Net present value is determined by deducting the initial investment from the current value of cash…

Answered: Assuming that your firm requires 8%…

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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Assuming that your firm requires 8% returns on such investments, what is the net present value of the project? $59.29 O $139.05 -$338.23 O $313.17