Use the information for the question(s)below.
The Sisyphean Company is planning on investing in a new project.This will involve the purchase of some new machinery costing $450,000.The Sisyphean Company expects cash inflows from this project as detailed below:
The appropriate discount rate for this project is 16%.
-The net present value (NPV)for this project is closest to:
A)$176,270
B)$123,420
C)$450,000
D)$179,590
E)$497,062

Question

Use the information for the question(s)below.
The Sisyphean Company is planning on investing in a new project.This will involve the purchase of some new machinery costing $450,000.The Sisyphean Company expects cash inflows from this project as detailed below:
  The appropriate discount rate for this project is 16%.
-The net present value (NPV)for this project is closest to:
A)$176,270 
B)$123,420 
C)$450,000 
D)$179,590 
E)$497,062

Quizplus · Accepted Answer

The net present value (NPV) calculation involves discounting future cash flows to their present value and summing them up. Based on the given options, $176,270 is the closest to the calculated NPV for the project.

Use the Information for the Question(s)below