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An Investment Project Requires a Net Investment of $100,000

Question 11

Multiple Choice

An investment project requires a net investment of $100,000.The project is expected to generate annual net cash inflows of $28,000 for the next 5 years.The firm's cost of capital is 12 percent.Determine the net present value for the project.


A) $940
B) $100,940
C) $77,884
D) $40,000

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