Multiple Choice
A 6-year project has a zero NPV with sales of $5 million and a discount rate of 8%.The annual cash inflows are equal to 10% of sales minus $300,000.What was the initial investment in the project assuming that none of the investment is recoverable when the project ends?
A) $416,667
B) $924,576
C) $1,016,678
D) $2,311,450
Correct Answer:
Verified
Correct Answer:
Verified
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