A project will produce cash inﬂows of $3,650 a year for four years. The start-up costs are $15,000. In year ﬁve, the project will be closed and as a result should produce a cash inﬂow of $7,500. What
Is the net present value of this project if the required rate of return is 11.5 percent?
A) $487.82
B) $501.09
C) $533.23
D) $556.07
E) $608.18

Question

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The Answer of A project will produce cash inﬂows of $3,650 a year for four years. The start-up costs are $15,000. In year ﬁve, the project will be closed and as a result should produce a cash inﬂow of $7,500. What
Is the net present value of this project if the required rate of return is 11.5 percent?
A) $487.82
B) $501.09
C) $533.23
D) $556.07
E) $608.18

A Project Will Produce Cash Inﬂows of $3,650 a Year