A project has an initial cash outflow of $42,600 and produces cash inflows of $17,680, $19,920, and $15,670 for Years 1 through 3, respectively. What is the NPV at a discount rate of 12 percent?
A) $186.95
B) -$108.19
C) $219.41
D) $229.09
E) $311.16

Question

Quizplus · Accepted Answer

The NPV is calculated by discounting each cash flow at 12% and summing them: NPV = -42600 + 17680/(1.12) + 19920/(1.12^2) + 15670/(1.12^3) = $219.41.

A Project Has an Initial Cash Outflow of $42,600 and Produces