Cortez Art Gallery is adding to its existing buildings at a cost of $2 million. The gallery expects to bring in additional cash flows of $520,000, $700,000, and $1,000,000 over the next three years. Given a required rate of return of 10 percent, what is the NPV of this project? (Do not round intermediate computations. Round final answer to nearest dollar.)
A) $1,802,554
B) $197,446
C) -$1,802,554
D) -$197,446

Question

Quizplus · Accepted Answer

The Answer of Cortez Art Gallery is adding to its existing buildings at a cost of $2 million. The gallery expects to bring in additional cash flows of $520,000, $700,000, and $1,000,000 over the next three years. Given a required rate of return of 10 percent, what is the NPV of this project? (Do not round intermediate computations. Round final answer to nearest dollar.)
A) $1,802,554
B) $197,446
C) -$1,802,554
D) -$197,446

Cortez Art Gallery Is Adding to Its Existing Buildings at a Cost