A Firm Estimates That It Will Receive Cash Flows from a New

Multiple Choice

A firm estimates that it will receive cash flows from a new product of $25,000 in Year 1, $22,000 in Year 2, and $19,000 in Year 3. If a discount rate of 8% is assumed, what is the NPV of this product's cash flows?

A) $71,280
B) $57,092
C) $66,000
D) NPV cannot be determined from the information given