Multiple Choice
A new project has an initial cost of $125,000 and cash flows of $33,300,$78,700,and $69,500 for Years 1 to 3,respectively.What is the net present value (NPV) of this project if the discount rate is 19.3 percent? What is the NPV if the discount rate is 12.7 percent?
A) $1,127.10;$17,209.11
B) -$859.11;$17,209.11
C) -$859.11;$15,062.34
D) $1,127.10;$17,388.09
E) -$604.17;$15,062.34
Correct Answer:
Verified
Correct Answer:
Verified
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