Which amount is the net present value of the project closest

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Reference no: EM132719634

Question - A project with an initial cost of $314,000 will generate no returns in the first two years of operations, and operating cash flows of $150,000 per year in Years 3, 4, and 5. The required rate of return is 7%. To which amount is the net present value of the project closest?

a. $61,900

b. $29,830

c. $393,645

d. $343,830

Reference no: EM132719634

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