Solved

A Firm Is Evaluating a Proposal Which Has an Initial

Question 49

Multiple Choice

A firm is evaluating a proposal which has an initial investment of $50,000 and has cash flows of $15,000 per year for five years. If the firm's required return or cost of capital is 10%, the NPV of the project is:


A) $5,000
B) $6,862
C) -$5,000
D) -$6,862

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions