What is the net present value of project

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Problem - A project costing $6,200 initially should produce cash inflows of $2,860 a year for three years. After the three years, the project will be shut down and will be sold at the end of Year 4 for an estimated net cash amount of $3,300. What is the net present value of this project if the required rate of return is 11.3 percent?

a. $3,011.40

b. $2,474.76

c. $1,980.02

d. $2,903.19

e. $935.56

Reference no: EM132450572

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