A project manager is using the net present value method to make the final decision on which project to undertake. The company has a 15% required rate of return and expects a 5% rate of inflation for the following four years
What is the NPV of a project that has cash flows as shown in the table?
Year Cash Flow
0 -$350,000
1 $50,000
2 $80,000
3 $100,000
4 $150,000
A) $4.955
B) $42,586
C) -$23,667
D) -$122,569
D
Business
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Indicate whether the statement is true or false
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