Corporate Finance Q53
0. An analyst determines the following cash flows for a capital project:
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash Flow | - 200 | 80 | 65 | 45 | 45 | 30 |
The required rate of return of the project is 12 percent. The net present value (NPV) of the project is closest to:
- Option : A
- Explanation : Enter the following values in a financial calculator: CF0 = -200, CF1 = 80, CF2 = 65, CF3 = 45, CF4 = 45, CF5 = 30, I = 12, NPV CPT = 0.897 ~ $1.0.
