Cornell Enterprises is considering a project that has the following cash flow and WACC data.What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected.
A)$ 92.37
B)$ 96.99
C)$101.84
D)$106.93
E)$112.28

Question

Quizplus · Accepted Answer

The correct answer is A. The project's NPV is $92.37. This is calculated by taking the present value of the cash flows and subtracting the initial investment. The present value of the cash flows is $192.37, and the initial investment is $100. Therefore, the NPV is $92.37.

Cornell Enterprises Is Considering a Project That Has the Following