What is the net present value of project

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Reference no: EM132020334

1. For a project with an initial investment of $40,000 and cash inflows of $11,000 a year for five years, calculate NPV given a required return of 10%/year.

a. $1,699

b. $1,103

c. $655

d. $888

e. -$1,205

2. You are considering a project that costs $6000 and has expected cash flows of $2200, $2420, and $2662.00 over the next three years. If the appropriate discount rate for the project's cash flows is 10%, what is the net present value of this project?

a. $0.00

b. $64.10

c. $19.79

d. $0.71

e. The NPV is negative

Reference no: EM132020334

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