Multiple Choice
A four-year project has an initial outlay of $100,000. The future cash inflows from its project are $50,000 for years one and two and $40,000 for years three and four. Given a discount rate of 10%,
Will the project be accepted?
A) Accept the project as the NPV is $44,150.
B) Reject the project as the NPV is $44,150.
C) Reject the project as the NPV is $(44,150) .
D) Accept the project as the NPV is $18,250.
E) Reject the project as the NPV is $18,250.
Correct Answer:

Verified
Correct Answer:
Verified
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