What is the net present value of a project that has an initial cash outflow of £12,670 and the following cash inflows? The required return is 11.5%.
$\begin{array}{|l|l|}
\hline \text { Year } & \text { Cash Inflows } \
\hline 1 & £ 4,375 \
\hline 2 & £ 0 \
\hline 3 & £ 8,750 \
\hline 4 & £ 4,100\
\hline
\end{array}$
A)£218.68
B)£370.16
C)£768.20
D)£1,249.65
E)£1,371.02

Question

Quizplus · Accepted Answer

The NPV is calculated by discounting each cash inflow at the required return rate and subtracting the initial outflow. The NPV is £218.68.

What Is the Net Present Value of a Project That