A Project Has an Initial Investment of $150 A) 50, -100, +400
B) -50, +300, +500
C) -100

Multiple Choice

A project has an initial investment of $150. You have come up with the following estimates of revenues and costs. Calculate the NPV assuming that cash flow and perpetuities. (No taxes.) (Cost of capital = 10%)
$$\begin{array} { l c c c } & \text { Pessimistic } & \text { Most Likely } & \text { Optimistic } \\\text { Total revenues } & + 30 & + 50 & 65 \\\text { Total costs } & - 25 & - 20 & - 15\end{array}$$

A) 50, -100, +400
B) -50, +300, +500
C) -100, +150, +350
D) None of the above