DiplomatComDiplomat

Multiple Choice

Diplomat.comDiplomat.com is considering a project that has an up-front cost of $3 million and is expected to produce a cash flow of $500,000 at the end of each of the next 5 years. The project's cost of capital is 10%.
-Refer to Scenario: Diplomat.Based on the above data,what is the project's net present value?

A) -$1,312,456
B) -$1,104,607
C) -$875,203
D) $105,999