Suppose you have an opportunity to invest in a project,which requires a cash outlay of $15,000 today.The project is expected to generate $6,000 in year 1,$6,500 in year 2,and $7,000 in year 3.The appropriate risk-adjusted discount rate for the project is 12 percent.What is the project's NPV? Assume the tax rate is zero.
A) −$1,120.29
B) $521.36
C) $732.48
D) $2,410.71
Correct Answer:
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