What should be the net present value of the investment

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Problem 1: The annual cash flows from a property held for investment for five years are $1.5 million, $2.7 million, $3.3 million, 0.9 million, and $3.6 million. The IRR from this investment is 12.5%. "A" believes that this total return accurately reflects the discount rate that should be used to calculate the present value of the cash flows from this investment. What should be the net present value (NPV) of this investment?

(a) + $12 million

(b) - $10 million

(c) + 0 million

(d) +15 million

Reference no: EM132936877

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