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March 31, 2015

Homework Help: Finance / Business

Posted by Jen on Thursday, May 22, 2008 at 4:40pm.

Can you please tell me if I am right on this? I believe the answer is c. $4,264.

A project has an initial outflow of $10,000. The project will generate free cash flows of $8,000 per year for two years. The discount rate is 8%. What is this projectís net present value (NPV)?
a. $4,250
b. $6,000
c.$4,264
d.$16,000
e. $8,000

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