5. Patterson Co. is considering a project that has the following cash flow cost of capital (r) data. What is the project's NPV? Note that if project's expec NPV is negative, it should be rejected. r- 10.00% Year 1 2 3 Cash Flows 950 500 400 300 A. 54.62 B. 57.49 C. 60.52 D. 63.54

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows
Section10.4: Internal Rate Of Return (irr)
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5. Patterson Co. is considering a project that has the following cash flow and
cost of capital (r) data. What is the project's NPV? Note that if project's expected
NPV is negative, it should be rejected.
r = 10.00%
Year
Cash Flows
950
1
500
400
3
300
A. 54.62
B. 57.49
С. 60.52
D. 63.54
Transcribed Image Text:5. Patterson Co. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that if project's expected NPV is negative, it should be rejected. r = 10.00% Year Cash Flows 950 1 500 400 3 300 A. 54.62 B. 57.49 С. 60.52 D. 63.54
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