Mathematics · Financial Mathematics
An investment project has a positive Net Present Value (NPV) of $7,222 when its cash flows are discounted at a cost of capital of 10% per year. The project is expected to generate net cash inflows of $18,000 per year for five years. The cumulative discount (annuity) factor for 5 years at 10% is 3.791. What is the amount of the initial investment at the start of the project?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$82,778
- 2$75,460
- 3$68,238
- 4$61,016✓
Correct answer
$61,016
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