Central Concrete is evaluating a project that would cost 1,302.00 today. The project is expected to have the following other cash flows: 10,070.00 in 1 year, 9,877.00 in 2 years, -9,662.00 in 3 years, and -10,323.00 in 4 years. The cost of capital of the project is 10.02 percent. What is the net present value of the project? $1,213.51 (plus or minus $3) The amount can not be determined or does not exist because the cash flows are not conventional $1,709.86 (plus or minus $3) $1,534.43 (plus or minus $3) -$6,865.14 (plus or minus $3)
Central Concrete is evaluating a project that would cost 1,302.00 today. The project is expected to have the following other cash flows: 10,070.00 in 1 year, 9,877.00 in 2 years, -9,662.00 in 3 years, and -10,323.00 in 4 years. The cost of capital of the project is 10.02 percent. What is the net present value of the project? $1,213.51 (plus or minus $3) The amount can not be determined or does not exist because the cash flows are not conventional $1,709.86 (plus or minus $3) $1,534.43 (plus or minus $3) -$6,865.14 (plus or minus $3)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Central Concrete is evaluating a project that would cost 1,302.00 today. The project is expected to have the following other cash flows: 10,070.00 in 1 year,
9,877.00 in 2 years, -9,662.00 in 3 years, and -10,323.00 in 4 years. The cost of capital of the project is 10.02 percent. What is the net present value of the
project?
O $1,213.51 (plus or minus $3)
The amount can not be determined or does not exist because the cash flows are not conventional
$1,709.86 (plus or minus $3)
$1,534.43 (plus or minus $3)
-$6,865.14 (plus or minus $3)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F19d0c0ee-b2f7-4400-bddc-d84e0eebb818%2F5bfaf347-62d0-4bd7-8a6b-237636dfb1ab%2Fsx1kgso_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Central Concrete is evaluating a project that would cost 1,302.00 today. The project is expected to have the following other cash flows: 10,070.00 in 1 year,
9,877.00 in 2 years, -9,662.00 in 3 years, and -10,323.00 in 4 years. The cost of capital of the project is 10.02 percent. What is the net present value of the
project?
O $1,213.51 (plus or minus $3)
The amount can not be determined or does not exist because the cash flows are not conventional
$1,709.86 (plus or minus $3)
$1,534.43 (plus or minus $3)
-$6,865.14 (plus or minus $3)
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