-Calculate the total net present value for the project using a discount rate of 20%.
A)-$32,000.00
B)-$8,847.74
C)$416,152.26
D)$425,000.00
E)Do not have enough information to compute

Question

-Calculate the total net present value for the project using a discount rate of 20%.
A)-$32,000.00 
B)-$8,847.74 
C)$416,152.26 
D)$425,000.00 
E)Do not have enough information to compute

Quizplus · Accepted Answer

The correct answer is B because the net present value of the project is -$8,847.74. This is calculated by taking the sum of the present values of all the cash flows, which is -$435,000, and subtracting the initial investment, which is $425,000.

-Calculate the Total Net Present Value for the Project Using