Kizspy | Question: 5
(Choose 1 answer)
A project will produce an operating cash flow of $25,000 a year from Year 1 to Year 4. The initial fixed asset investment in the project will be $80,000. The net after-tax salvage value is estimated at $8,000 and will be received in the last year of the project's life. What is the net present value (NPV) of the project if the required rate of return is 15 percent?
A. -$4,052
B. -$8,626
C. $28,000
D. $13,200
