(6.1) Please provide step by step explnation (no working out on excel) q3- A project will require an initial outlay of $4000 and will result in a cash inflow of $4400 in 3 years' time. These are the only cash flows from the project. If the cost of capital is 6%, what is the NPV of the project? a. $151 b. $-299 c. $-321 d. $-306 Clear my choice

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 21P
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(6.1)

Please provide step by step explnation (no working out on excel)

q3- A project will require an initial outlay of $4000 and will result in a cash inflow of $4400 in 3 years' time. These are the only cash flows from the project. If the cost of capital is 6%, what is the NPV of the project?

a.

$151

b.

$-299

c.

$-321

d.

$-306

Clear my choice

 

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