Scott Enterprises is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that if a project's expected NPV is negative, it should be rejected. r: 11.00% Year 0 1 2 3 4 Cash flows −$1,000 $350 $350 $350 $350 a. $85.86 b. $90.15 c. $77.49 d. $81.56 e. $94.66
Scott Enterprises is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that if a project's expected NPV is negative, it should be rejected. r: 11.00% Year 0 1 2 3 4 Cash flows −$1,000 $350 $350 $350 $350 a. $85.86 b. $90.15 c. $77.49 d. $81.56 e. $94.66
Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows
Section: Chapter Questions
Problem 23SP
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Question
Scott Enterprises is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV ? Note that if a project's expected NPV is negative, it should be rejected.
r: | 11.00% | ||||
Year | 0 | 1 | 2 | 3 | 4 |
Cash flows | −$1,000 | $350 | $350 | $350 | $350 |
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NPV is the sum of future cashflows
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