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  3. Study Set
    Fiscal Administration
  4. Exam
    Exam 7: Capital Budgeting, Time Value of Money, and Cost-Benefit Analysis: Process, Structure, and Basic Tools
  5. Question
    What Is the Net Present Value for a Project Costing
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What Is the Net Present Value for a Project Costing

Question 1

Question 1

Multiple Choice

What is the Net Present Value for a project costing $200,000 in the first year no discount) that produces a net benefit of $40,000/year for seven years when the discount rate is 7%?


A) $215,572
B) $15,572
C) 1.0779
D) 5 years

Correct Answer:

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