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What Is the NPV for the Following Project If Its

Question 52

Multiple Choice

What is the NPV for the following project if its cost of capital is 12% and its initial after-tax cost is $5,000,000 and it is expected to provide after-tax operating cash flows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and ($1,300,000) in year 4?


A) ($1,494,336)
B) $1,494,336
C) greater than zero
D) two of the above

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