A project has an initial cash outlay of $29,500. Cash inflows are estimated at $1,200, $6,900, $7,800, $9,500, and $4,800 for years 1 through 5, respectively. What is the net present value of this project given a 7% discount rate?

A) ($5,677.15)
B) ($5,314.82)
C) ($2,618.03)
D) $700.00
E) $1,806.33

Question

Chris Ceballos · Accepted Answer

Final Answer : B, Explanation :  The net present value (NPV) is calculated by discounting each of the cash inflows at the given discount rate (7%) and subtracting the initial cash outlay. The NPV is negative, indicating the project is not financially viable at this discount rate.

A project has an initial cash outlay of $29,500. Cash inflows are estimated at $1,200, $6,900, $7,800, $9,500, and $4,800 for years 1 through 5, respectively. What is the net present value of this project given a 7% discount rate?

A) ($5,677.15)
B) ($5,314.82)
C) ($2,618.03)
D) $700.00
E) $1,806.33

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A project has an initial cash outlay of $29,500. Cash inflows are estimated at $1,200, $6,900, $7,800, $9,500, and $4,800 for years 1 through 5, respectively. What is the net present value of this project given a 7% discount rate?A) ($5,677.15) B) ($5,314.82) C) ($2,618.03) D) $700.00E) $1,806.33

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