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Compute the NPV for Project X and Accept or Reject  Time: 012345 Cash flow: 10007510010002000\begin{array} { l l l l l l l } \text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \\\text { Cash flow: } & - 1000 & - 75 & 100 & 100 & 0 & 2000\end{array}

Question 4

Multiple Choice

Compute the NPV for Project X and accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 9 percent.  Time: 012345 Cash flow: 10007510010002000\begin{array} { l l l l l l l } \text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \\\text { Cash flow: } & - 1000 & - 75 & 100 & 100 & 0 & 2000\end{array}


A) -$639.96
B) $360.04
C) $392.44
D) $486.29

Correct Answer:

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