Reed Enterprises is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected. r: 10.00%       Year 0 1 2 3 Cash flows −$1,050 $450 $460 $470   a. $96.99     b. $92.37     c. $101.84     d. $112.28     e. $106.93

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows
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Reed Enterprises is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected.

r: 10.00%      
Year 0 1 2 3
Cash flows −$1,050 $450 $460 $470
  a. $96.99  
  b. $92.37  
  c. $101.84  
  d. $112.28  
  e. $106.93
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