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    Contemporary Financial Management Study Set 1
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    Exam 10: Capital Budgeting: Decision Criteria and Real Option Considerations
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    What Is the Net Present Value of a Project That
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What Is the Net Present Value of a Project That

Question 40

Question 40

Multiple Choice

What is the net present value of a project that requires a net investment of $76,000 and produces net cash flows of $22,000 per year for 7 years? Assume the cost of capital is 15 percent.


A) $91,520
B) $15,520
C) $78,000
D) $167,474

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