What is the net present value of a project with the following cash flows if the required rate of return is 9 percent?

Question

Quizplus · Accepted Answer

Using a financial calculator or Excel, we can calculate the NPV as the sum of the present values of the cash flows:
NPV = -$3,000 + $900/(1.09)^1 + $1,200/(1.09)^2 + $1,500/(1.09)^3 + $1,800/(1.09)^4
NPV = $5,904.65

Therefore, the best choice is C since it has the highest NPV, indicating that the project is expected to generate positive value and is worth investing in.

What Is the Net Present Value of a Project with the Following