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A Project Has the Following Cash Flows:CF 0 -1,000CF 1

Question 9

Multiple Choice

A project has the following cash flows:CF 0 -1,000CF 1 $500CF 2 $400CF 3 $300CF 4 $100Assuming a required rate of return of 10% what is this project's PI?NPV @ r = 10% = $1,078PV (Costs) = $1,000PI = $1,078 / $1,000 = 1.078 = 1.08


A) 1.58
B) 1.08
C) 1.00
D) 1.33

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