A project will produce an operating cash flow of $56,200 a year for 5 years. The initial fixed asset investment in the project will be $238,900. The net aftertax salvage value is estimated at $67,000 and will be received during the last year of the project's life. What is the net present value of the project if the required rate of return is 15.2 percent?
A) −$20,627.54
B) −$18,374.86
C) $5,120.52
D) $18,374.86
E) $20,627.54

Question

Quizplus · Accepted Answer

The Answer of A project will produce an operating cash flow of $56,200 a year for 5 years. The initial fixed asset investment in the project will be $238,900. The net aftertax salvage value is estimated at $67,000 and will be received during the last year of the project's life. What is the net present value of the project if the required rate of return is 15.2 percent?
A) −$20,627.54
B) −$18,374.86
C) $5,120.52
D) $18,374.86
E) $20,627.54

A Project Will Produce an Operating Cash Flow of $56,200