A project costing $6,200 initially should produce cash inflows

Question # 00452770 Posted By: katetutor Updated on: 12/30/2016 05:23 AM Due on: 12/30/2016
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A project costing $6,200 initially should produce cash inflows of $2,860 a year for three years. After the three years, the project will be shut down and will be sold at the end of Year 4 for an estimated net cash amount of $3,300. What is the net present value of this project if the required rate of return is 11.3 percent?

$3,011.40

$2,903.19

$935.56

$2,474.76

$1,980.02



A proposed project costs $300 and has cash flows of $80, $200, $75, and $90 for Years 1 to 4, respectively. Because of its high risk, the project has been assigned a discount rate of 16 percent. In dollars, how much will this project return in today’s dollars for every $1 invested?


$.99 

$1.05 

$1.03 

$1.01 

$.97

What is the net present value of a project that has an initial cash outflow of $7,670 and cash inflows of $1,280 in Year 1, $6,980 in Year 3, and $2,750 in Year 4? The discount rate is 12.5 percent.

$371.02

$249.65

$86.87

$270.16

$68.20

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