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

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows
Section: Chapter Questions
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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
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NPV is the sum of future cashflows

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