Proposed project requires an initial cash outlay

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Reference no: EM131063453

A proposed project requires an initial cash outlay of $849,000 for equipment and an additional cash outlay of $48,500 in year 1 to cover operating costs. During years 2 through 4, the project will generate cash inflows of $354,000 a year. What is the net present value of this project at a discount rate of 13 percent? Round your answer to the nearest whole dollar.

a) -$152,232

b) -$66,391

c) $67,333

d) $128,612

e) $239,602

Reference no: EM131063453

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