Determining the net present value of project

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Reference no: EM139806

Zynga is a software developer and is considering a project that requires an initial investment of $200,000 and subsequent investments of $150,000 at the end of year 1, and $100,000 at the end of year 2. At the end of years 3 through 8, Zynga expects net cash flows of $90,000 each year. Zynga assigns a discount rate of 10% to the project.

The Net Present Value of the project is approximately

a. $391,975
b. $104,940
c. $-58,030
d. $-95,065

Reference no: EM139806

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