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:

Verified
Correct Answer:
Verified
Q44: Cannibalization occurs when a project robs cash
Q45: Reasons NPV, IRR, MIRR, and PI will
Q46: The first step in the capital budgeting
Q47: One weakness of the payback period method
Q48: A NPV profile shows how NPV varies
Q50: The net present value of an investment
Q52: The IRR<br>A) shows the graphical relationship between
Q53: Information generation develops three types of data:
Q54: Projects with negative net present values will
Q143: All of the following statements are correct