A project costs 1,000 and returns 600 yearly for two years. NPV at 10 percent?
AAbout 200
BAbout 41
CAbout -41
DAbout 120
Answer & Solution
Correct answer: B. About 41
600/1.1 is 545.45 and 600/1.21 is 495.87, totalling 1,041.32, so net of 1,000 the NPV is about 41.
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