Given the following cash flows for project A: C₀ = -3,000,C₁ = +500,C₂ = +1,500,and C₃ = +5,000,calculate the NPV of the project using a 15% discount rate. A)$5,000 B)$2,352 C)$3,201 D)$1,857

Name: Given the following cash flows for project A: C 0 = -3,000,C 1 = +500,C 2 = +1,500,and C 3 = +5,000,calculate the NPV of the project using a 15% discount rate. A)$5,000 B)$2,352 C)$3,201 D)$1,857
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Question

Quizplus · Accepted Answer

The NPV is calculated as: NPV = -3000 + 500/(1+0.15)^1 + 1500/(1+0.15)^2 + 5000/(1+0.15)^3 = $1,857.

Given the Following Cash Flows for Project A: C0 =

Given the Following Cash Flows for Project A: C₀ =