Following details are provided by VPN Company.
$$\begin{array} { | c | c | }
\hline \text { Initial investment } & \$ 5,000,000 \
\hline \text { Discount rate } & 15 \% \
\hline \text { Yearly cash flows } & \
\hline 1 & \$ 1,268,000 \
\hline 2 & \$ 1,358,000 \
\hline 3 & \$ 2,416,000 \
\hline 4 & \$ 1,170,000 \
\hline
\end{array}$$
Refer to the following table for PV factors:
$$\begin{array} { | c | c | c | c | }
\hline & 13 \% & 14 \% & 15 \% \
\hline 1 & 0.885 & 0.877 & 0.87 \
\hline 2 & 0.783 & 0.769 & 0.756 \
\hline 3 & 0.693 & 0.675 & 0.658 \
\hline 4 & 0.613 & 0.592 & 0.572 \
\hline
\end{array}$$
What is the NPV of the project?

Question

Following details are provided by VPN Company.
$$\begin{array} { | c | c | } 
\hline \text { Initial investment } & \$ 5,000,000 \
\hline \text { Discount rate } & 15 \% \
\hline \text { Yearly cash flows } & \
\hline 1 & \$ 1,268,000 \
\hline 2 & \$ 1,358,000 \
\hline 3 & \$ 2,416,000 \
\hline 4 & \$ 1,170,000 \
\hline
\end{array}$$
Refer to the following table for PV factors:
$$\begin{array} { | c | c | c | c | } 
\hline & 13 \% & 14 \% & 15 \% \
\hline 1 & 0.885 & 0.877 & 0.87 \
\hline 2 & 0.783 & 0.769 & 0.756 \
\hline 3 & 0.693 & 0.675 & 0.658 \
\hline 4 & 0.613 & 0.592 & 0.572 \
\hline
\end{array}$$
What is the NPV of the project?

Quizplus · Accepted Answer

Without any information on the PV factors or cash flows of the project, it is impossible to determine the NPV. The provided codes are likely internal codes and are not relevant to calculating the NPV. Therefore, the only reasonable answer is C, as it is the only option with a negative NPV.

Following Details Are Provided by VPN Company Refer to the Following Table for PV Factors