Chronic Pain Clinic has estimated the following cash flows associated with a new project. The project cost of capital (discount rate) is 10 percent. Year Expected Net Cash Flow ($800,000) 1 400,000 2 400,000 3 400,000 What is the project's NPV?

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Chronic Pain Clinic has estimated the following cash flows associated with a new project. The project cost of capital (discount rate) is
10 percent.
Year
Expected Net Cash Flow
($800,000)
1
400,000
2
400,000
3
400,000
What is the project's NPV?
O (a) $126,897
O (b) $194,741
O (c) $207,223
O (d) $224,538
O (e) $246,992
Transcribed Image Text:Chronic Pain Clinic has estimated the following cash flows associated with a new project. The project cost of capital (discount rate) is 10 percent. Year Expected Net Cash Flow ($800,000) 1 400,000 2 400,000 3 400,000 What is the project's NPV? O (a) $126,897 O (b) $194,741 O (c) $207,223 O (d) $224,538 O (e) $246,992
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