In: Finance
What is the net present value of the following cash flows if the relevant discount rate is 9 percent?
Year Cash Flow
0 | -11,520 |
1 | 81 |
2 | 650 |
3 | 880 |
4 | 2300 |
5 | 15,800 |
A) $1,300.54 B) $1,913.12 C) $1,679.22 D) $1,022.87 E) $1,506.54
45) SNR is considering a project with an initial cost of
$50,000. The project will produce cash inflows of $10,000 a year
for the first two years and $12,000 a year for the following three
years. What is the payback period?
A) 4.23 years B) 5.23 years C) 3.87 years D) 4.79 years E) 4.5
years