Figure 4
A capital investment project requires an investment of £60,000 and has an expected life of four years. Annual cash flows, which occur evenly throughout the year, are expected to be as follows:

-Refer to Figure 4. The net present value of the project using a 6 percent discount rate is

Question

Figure 4
A capital investment project requires an investment of £60,000 and has an expected life of four years. Annual cash flows, which occur evenly throughout the year, are expected to be as follows:
 
-Refer to Figure 4. The net present value of the project using a 6 percent discount rate is

Quizplus · Accepted Answer

The net present value (NPV) is calculated by discounting the future cash flows of a project to their present value and then subtracting the initial investment. Without the specific cash flows and initial investment details from Figure 4, we cannot perform the exact calculation here. However, the correct answer is chosen based on the information provided in the question.

Figure 4 a Capital Investment Project Requires an Investment of £60,000 and £60,000