A contract is estimated to yield 48 quarterly net returns of $3000 beginning three months from now. To secure the contract, outlays of $40,000 now and $35, 000 two years from now are required. What is the contract's net present value to a business whose cost of capital is 12% compounded quarterly? Multiple Choice S 35,800.12 $10,444.80 $23, 200.17 $800.12 $8170.80

A contract is estimated to yield 48 quarterly net returns of $3000 beginning three months from now. To secure the contract, outlays of $40,000 now and $35, 000 two years from now are required. What is the contract's net present value to a business whose cost of capital is 12% compounded quarterly? Multiple Choice S 35,800.12 $10,444.80 $23, 200.17 $800.12 $8170.80

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 2P

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