Mathematics · Financial Mathematics
A project has an initial outflow of $12,000 followed by six equal annual cash inflows, commencing in one year's time. The payback period is exactly four years. If the cost of capital is 12% per year, what is the project's net present value (NPV) rounded to the nearest dollar?
- 1-$5,926
- 2-$3,778
- 3-$2,899
- 4$333✓
Correct answer
$333
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