question archive 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
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