Business, 05.03.2020 21:40 mercedesamatap21hx0

A project costs $91,000 today and is expected to generate cash flows of $11,000 per year for the next 20years. The firm has a cost of capital of 8 percent. Should this project be accepted, and why?

A. Yes, the project should be accepted since it has a NPV = $15,391.23.

B. Yes, the project should be accepted since it has a NPV = $13,610.89.

C. Yes, the project should be accepted since it has a NPV = $16,999.62.

D. None of these answers is correct.

Answers: 1

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A project costs $91,000 today and is expected to generate cash flows of $11,000 per year for the nex...