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    Principles of Corporate Finance Study Set 3
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    Exam 5: Net Present Value and Other Investment Criteria
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    If the Cash Flows for Project a Are C<sub>0</sub> =
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If the Cash Flows for Project a Are C0 =

Question 68

Question 68

Multiple Choice

If the cash flows for project A are C0 = -3,000, C1 = +500; C2 = +1,500; and C3 = +5,000, calculate the NPV of the project using a 15 percent discount rate.


A) $5,000
B) $2,352
C) $3,201
D) $1,857

Correct Answer:

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