BECL Ltd is considering a project, which will involve the following cash inflows and (out)flows:     $000 Initial Outlay (400) After 1 year 40 After 2 years 300 After 3 years 300 What will be the NPV (net present value) of this project if a discount rate of 15% is used? a. -$60.8k b. $460.8k c. $240k d. $60.8k

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 15EB: Project X costs $10,000 and will generate annual net cash inflows of $4,800 for five years. What is...
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BECL Ltd is considering a project, which will involve the following cash inflows and (out)flows:
 

 

$000

Initial Outlay

(400)

After 1 year

40

After 2 years

300

After 3 years

300


What will be the NPV (net present value) of this project if a discount rate of 15% is used?

a.

-$60.8k

b.

$460.8k

c.

$240k

d.

$60.8k

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