Compute the NPV for Project X and accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent. Time:
$$\begin{array} { | l | c | c | c | c | c | c | }
\hline \text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \
\hline \text { Cash flow: } & - 75 & - 75 & 0 & 100 & 75 & 50 \
\hline
\end{array}$$
A)$12.93
B)$14.22
C)$62.07
D)$136.90

Question

Compute the NPV for Project X and accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent. Time:
$$\begin{array} { | l | c | c | c | c | c | c | } 
\hline \text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \
\hline \text { Cash flow: } & - 75 & - 75 & 0 & 100 & 75 & 50 \
\hline
\end{array}$$
A)$12.93
B)$14.22
C)$62.07
D)$136.90

Quizplus · Accepted Answer

The Answer is B

Compute the NPV for Project X and Accept or Reject