What is the NPV of the project if first year savings are only $75,000 and the project is not sold?
A) ($4,545)
B) ($15,691)
C) $15,691
D) $75,000

Question

Quizplus · Accepted Answer

The NPV calculation considers the present value of cash flows minus the initial investment. If the first year savings are only $75,000 and the project is not sold, the NPV would be negative, specifically ($15,691), indicating the project does not cover its initial costs.

What Is the NPV of the Project If First Year