Consider a project with the following cash flows: Year Cash Flow - 10000 1 5000 5000 3 5000 4 5000 If the appropriate discount rate for this project is 15%, then the net present value (NPV) is closest to: O A. $2,565 О В. $4,275 O C. $2,992 O D. $30,000

Consider a project with the following cash flows: Year Cash Flow - 10000 1 5000 5000 3 5000 4 5000 If the appropriate discount rate for this project is 15%, then the net present value (NPV) is closest to: O A. $2,565 О В. $4,275 O C. $2,992 O D. $30,000

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter26: Real Options

Section: Chapter Questions

Problem 9SP

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Consider a project with the following cash flows:
Year
Cash Flow
- 10000
1
5000
5000
3
5000
4
5000
If the appropriate discount rate for this project is 15%, then the net present value (NPV) is closest to:
O A. $2,565
O B. $4,275
O C. $2,992
O D. $30,000

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