Homework Answers
Project cash flows:
Initial cost = 149920
CF1 = 34500
CF2 = 55950
CF3 = 62210
CF4 = 59930
CF5 = 42910
Required rate (r) = 8%
NPV = Sum of present value of cash inflows - Initial cost
= 34500/(1+8%)^1 + 55950/(1+8%)^2 + 62210/(1+8%)^3 + 59930/(1+8%)^4 + 42910/(1+8%)^5 - 149920
= $52,631.02
Correct Choice D
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