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What Is the NPV of a Project That Costs $100,000

Question 103

Multiple Choice

What is the NPV of a project that costs $100,000, provides $23,000 in cash flows annually for 6 years, requires a $5,000 increase in net working capital, and depreciates the asset straight-line over 6 years while ignoring the half-year convention? The discount rate is 14%.


A) -$15,560.04
B) -$13,282.71
C) $3,411.14
D) $14,782.09

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