What is the net present value of a project that requires a net investment of $76,000 and produces net cash flows of $22,000 per year for 7 years? Assume the cost of capital is 15 percent.
A)$91,520
B)$15,520
C)$78,000
D)$167,474

Name: What is the net present value of a project that requires a net investment of $76,000 and produces net cash flows of $22,000 per year for 7 years? Assume the cost of capital is 15 percent. A)$91,520 B)$15,520 C)$78,000 D)$167,474
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Quizplus · Accepted Answer

NPV = $22,000(4.160) - $76,000 = $15,520

What Is the Net Present Value of a Project That