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Compute the NPV for Project X with the Cash Flows

Question 29

Multiple Choice

Compute the NPV for Project X with the cash flows shown as follows if the appropriate cost of capital is 9 percent.
 Time 012345 Cash Flow $5,000$1,000$2,000$2,000$500$500\begin{array} { l l l l l l l l l } \text { Time } & 0 & 1 & & 2 & & 3 & 4 & 5 \\\text { Cash Flow } & - \$ 5,000 & \$ 1,000 & \$ & 2,000 & \$ & 2,000 & \$ 500 & \$ 500\end{array}


A) ?$2,013.18
B) ?$175.66
C) $486.29
D) $9,824.34

Correct Answer:

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