Use the table for the question(s)below.
Consider a project with the following cash flows:

-Given the cash flows in the table above,the point at which the NPV profile crosses the vertical axis is:
A)$6000
B)-$867
C)22.0%
D)15.0%

Question

Use the table for the question(s)below.
Consider a project with the following cash flows:
 
-Given the cash flows in the table above,the point at which the NPV profile crosses the vertical axis is:
A)$6000 
B)-$867 
C)22.0% 
D)15.0%

Quizplus · Accepted Answer

The point where the NPV profile crosses the vertical axis represents the initial cash flow, which is typically the initial investment or cash outflow. In this case, it is $6000.

Use the Table for the Question(s)below