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Calculate the NPV of a Project Requiring a $3,000 Investment

Question 34

Multiple Choice

Calculate the NPV of a project requiring a $3,000 investment followed by an outflow of $500 in Year 1, and inflows of $1,000 in Year 2 and $4,000 in Year 3. The cost of capital is 12%. (Round to nearest $)


A) $52
B) $198
C) $257
D) $486

Correct Answer:

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