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Following details are provided by Dopler Company.

Initial investment $2,000,000
Discount rate 12%
Yearly cash flows
1 $200,000
2 $400,000
3 $400,000
4 $400,000
5 $200,000

Refer to the following table for PV factors:

10% 11% 12% 13%
1 0.909 0.901 0.893 0.885
2 0.826 0.812 0.797 0.783
3 0.751 0.731 0.712 0.693
4 0.683 0.659 0.636 0.613
5 0.621 0.593 0.567

0.543

Calculate the NPV of the project.

A. $250,000 positive
B. $1,005,000 positive
C. $950,000 negative
D. $850,000 negative

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  • Reference No.:- M92595773
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