Mathematics · Financial Management
A company is considering a project with an initial investment of $100,000. The project is expected to generate annual net cash inflows of $30,000 for 5 years. The company's cost of capital is 10%. Using the annuity factor of 3.791 for 5 years at 10%, calculate the net present value (NPV) of the project to the nearest $10.
- 1$18,790
- 2$14,270
- 3$13,700
- 4$13,730✓
Correct answer
$13,730
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