Estimate what is the project net present value

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Reference no: EM132920753

You are considering a project that requires an initial investment of $105,000 with a cost of capital of 12%. You expect the project to have a five-year life, and produce cash flows of $19,000 in year 1, $32,000 in year 2, $64,000 in year 3, $26,000 in year 4 and $10,000 in year 5.

Problem 1: What is this project's net present value?

Group of answer choices

Option 1: $5,226

Option 2: $ 6,129

Option 3: $10,172

Option 4: $7,076

Reference no: EM132920753

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