The net present value of the project is ________.

Name: The net present value of the project is ________.
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Question

Quizplus · Accepted Answer

Calculating the net present value of the project using the given information, we get:
NPV = (1600/1.08) + (1400/1.08^2) + (1200/1.08^3) - 4500
NPV = 1481.48 + 1140.02 + 838.17 - 4500
NPV = -$1040.33
Since the NPV is negative, the project should be rejected. The best choice is to not invest in the project, which is option A.

The Net Present Value of the Project Is ________