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A Four-Year Project Has an Initial Outlay of $100,000

Question 353

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.

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