Compute the NPV of this project if the company's discount rate is 12%

Artie's Soccer Ball Company is considering a project with the following cash flows:
Initial outlay = $750,000
Incremental after-tax cash flows from operations Years 1-4 = $250,000 per year

A) $9,337
B) $7,758
C) $4,337
D) $2,534

Answer: A

Business

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