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Calculate the Net Present Value for an Investment Project with the Following

Question 98

Multiple Choice

Calculate the net present value for an investment project with the following cash flows using a 12 percent cost of capital:
 Year 0123 Net Cash Flow $100,000$80,000$80,000$30,000\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\text { Net Cash Flow } & - \$ 100,000 & \$ 80,000 & \$ 80,000 & - \$ 30,000\end{array}


A) $56,560 -$100,000 $80,000 $80,000 -$30,000
B) $30,000
C) $13,840
D) cannot be determined with information given

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