Scott Enterprises is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that if a project's expected NPV is negative, it should be rejected.
A) $77.49
B) $81.56
C) $85.86
D) $90.15
E) $94.66

Question

Scott Enterprises is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that if a project's expected NPV is negative, it should be rejected. 
A) $77.49 
B) $81.56 
C) $85.86 
D) $90.15 
E) $94.66

Quizplus · Accepted Answer

Using a financial calculator or spreadsheet, we can find the NPV of the project to be $85.86. Since the NPV is positive, the project should be accepted.

Scott Enterprises Is Considering a Project That Has the Following