The following details are provided by Ferrous Foundry Company: Initial investment $5,020,000 Discount rate 15% Yearly cash inflows 1 $1,254,000 2 $1,360,000 3 $2,402,000 4 $1,166,000 PV of $1: 13% 14% 15% 1 0.885 0.877 0.87 2 0.783 0.769 0.756 3 0.693 0.675 0.658 4 0.613 0.592 0.572 What is the NPV of the project? A. $617,424 B. $(653,392) C. $(594,032) D.592,360
The following details are provided by Ferrous Foundry Company: Initial investment $5,020,000 Discount rate 15% Yearly cash inflows 1 $1,254,000 2 $1,360,000 3 $2,402,000 4 $1,166,000 PV of $1: 13% 14% 15% 1 0.885 0.877 0.87 2 0.783 0.769 0.756 3 0.693 0.675 0.658 4 0.613 0.592 0.572 What is the NPV of the project? A. $617,424 B. $(653,392) C. $(594,032) D.592,360
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
The following details are provided by Ferrous Foundry Company:
|
Initial investment
|
$5,020,000
|
|
Discount rate
|
15%
|
|
Yearly
|
|
|
1
|
$1,254,000
|
|
2
|
$1,360,000
|
|
3
|
$2,402,000
|
|
4
|
$1,166,000
|
PV of $1:
|
|
13%
|
14%
|
15%
|
|
1
|
0.885
|
0.877
|
0.87
|
|
2
|
0.783
|
0.769
|
0.756
|
|
3
|
0.693
|
0.675
|
0.658
|
|
4
|
0.613
|
0.592
|
0.572
|
What is the NPV of the project?
$617,424
$(653,392)
$(594,032)
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