nore income taxes in this problem.) The discount rate is 1%.  Your Corporation is considering an investment project that will require an initial investment of $15,000 and will generate the following net cash inflows in each of the three years of the project:     Year 1 Year 3 Year 7       Cash inflows.......... $8,000 $7,000 $9,000       Cash outflows........ $0 $0 $2,500       What is the net present value for this project? Group of answer choices $5,670 $5,092 $5,782

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...
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(Ignore income taxes in this problem.) The discount rate is 1%.  Your Corporation is considering an investment project that will require an initial investment of $15,000 and will generate the following net cash inflows in each of the three years of the project:

 

 

Year 1

Year 3

Year 7

 

 

 

Cash inflows..........

$8,000

$7,000

$9,000

 

 

 

Cash outflows........

$0

$0

$2,500

 

 


 
What is the net present value for this project?

Group of answer choices

$5,670

$5,092

$5,782

$4,722

$4,890

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