Suppose Pheasant Pharmaceuticals is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $3,225,000. The project is expected to generate the following net cash flows: Year Cash Flow Year 1 $375,000 Year 2 $425,000 Year 3 $500,000 Year 4 $400,000 If Pheasant Pharmaceutical's weighted average cost of capital is 8%, what is the NPV for this project? Group of answer choices -$2,186,977 -$5,047,481 -$1,822,481 -$1,422,481

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Suppose Pheasant Pharmaceuticals is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $3,225,000. The project is expected to generate the following net cash flows:

Year Cash Flow
Year 1  $375,000
Year 2 $425,000
Year 3 $500,000
Year 4 $400,000

If Pheasant Pharmaceutical's weighted average cost of capital is 8%, what is the NPV for this project?

Group of answer choices
-$2,186,977
-$5,047,481
-$1,822,481
-$1,422,481
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