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 projectâ€™s net present value (NPV)?

a. $4,250

b. $6,000

c.$4,264

d.$16,000

e. $8,000

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