question archive What is the project's NPV? WACC: 9

What is the project's NPV? WACC: 9

Subject:FinancePrice:2.86 Bought12

What is the project's NPV? WACC: 9.00% Year 0 2 3 Cash flows -$1275 $300 $400 $300 O a.-5455.67 O b. 5435.89 O c $299.01 O d. -$275.00 O e. -$431.44

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The NPV is computed as follows:

= - Initial cost + Future value / (1 + r)n

= - $ 1275 + $ 300 / 1.09 + $ 400 / 1.092 + $ 300 / 1.093

= - $ 431.44