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What Is the Project's NPV If It Requires an Initial

Question 65

Multiple Choice

What is the project's NPV if it requires an initial cash outlay of $50,000 and pays $8,000 per year indefinitely? Assume the appropriate discount rate is 15%.Ignore income taxes for this question.


A) -$3,623
B) $1,480
C) $3,333
D) $53,333

Correct Answer:

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