Consider a project with the following cash flows: Year Cash Flow - 11000 1 4000 4000 3 4000 4 4000 If the appropriate discount rate for this project is 15%, then the net present value (NPV) is closest to: A. $27,000 B. $420 C. $294 D. $252

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
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Consider a project with the following cash flows:
Year
Cash Flow
- 11000
1
4000
4000
3
4000
4
4000
If the appropriate discount rate for this project is 15%, then the net present value (NPV) is closest to:
A. $27,000
B. $420
C. $294
D. $252
Transcribed Image Text:Consider a project with the following cash flows: Year Cash Flow - 11000 1 4000 4000 3 4000 4 4000 If the appropriate discount rate for this project is 15%, then the net present value (NPV) is closest to: A. $27,000 B. $420 C. $294 D. $252
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