Requires an initial cash outlay

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Reference no: EM13907370

AXY requires an initial cash outlay of $675,000 for equipment. You expect to spend an additional $45,000 in the first year to cover costs as the project will produce negligible cash inflows for that year. During years 2 through 6, you expect to receive cash inflows of $325,000 a year. What is the net present value of this project at a discount rate of 14 percent?

$116,189.91

$182,076.37

$226,956.50

$264,255.54

$395,751.31

Reference no: EM13907370

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