Firm is considering an investments net present value

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Reference no: EM13947844

Your firm is considering an investment that will cost $920,000 today. The investment will produce cash flows of $450,000 in year 1, $270,000 in years 2 through 4, and $200,000 in year 5. The discount rate that your firm uses for projects of this type is 11.25%What is the investments net present value?

a. 112,583

b. 540000

c. 192,369

d. 378,458

Reference no: EM13947844

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