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 5. The net present value of the project 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 5. The net present value of the project is

Quizplus · Accepted Answer

The net present value (NPV) is calculated by discounting the future cash flows of a project and subtracting the initial investment. The correct NPV value from the given options is £393, which indicates that the project is expected to generate a positive return over its cost.

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