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A Project Has an Initial Cost of £30m and the Opportunity

Question 16

Multiple Choice

A project has an initial cost of £30m and the opportunity cost of capital is 10 per cent per year. There is an expected cash flow after year 1 of £8.8m. What is the NPV?


A) - £22m
B) +£39.68m
C) - £20.32m
D) - £24.2m

Correct Answer:

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