What is the net present value of the following project if the required rate of return is 15%? The initial investment is $150,000
$$\begin{array} { | c | r | }
\hline \text { Years } & \text { Cash Flaws } \
\hline 1 & \mathbf { 3 0 , 0 0 0 } \
\hline 2 & \$ 80,000 \
\hline 3 & \$ 100,000 \
\hline 4 & \$ 200,000 \
\hline
\end{array}$$
A)$203,690
B)$180,665
C)$150,000
D)$116,681

Question

What is the net present value of the following project if the required rate of return is 15%? The initial investment is $150,000
$$\begin{array} { | c | r | } 
\hline \text { Years } & \text { Cash Flaws } \
\hline 1 & \mathbf { 3 0 , 0 0 0 } \
\hline 2 & \$ 80,000 \
\hline 3 & \$ 100,000 \
\hline 4 & \$ 200,000 \
\hline
\end{array}$$
A)$203,690
B)$180,665
C)$150,000
D)$116,681

Quizplus · Accepted Answer

The NPV is calculated by discounting each cash flow at the required rate of return and subtracting the initial investment. The NPV is $116,681.

What Is the Net Present Value of the Following Project