What the net present value of the capital outlay is

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Problem 1: A firm is considering a capital project for a parking lot that will produce revenues for seven years and which will require an additional outlay of cash of $25,000 at the end of four years. The firm uses a target rate of 9% to evaluate its capital projects. The net present value of the capital outlay is:

A. $81,000
B. $13,675
C. $17,700
D. $125,825

Reference no: EM132962258

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