Blink of an Eye Company is evaluating a 5year project that w

Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of $32,900, $47790, $61,890, $59,490, and $42,390, respectively. The project has an initial cost of $139040 and the required returm Is 7.6 percent. What is the project\'s NPV O $20.785 83 O $24,85064 O $56.264 80 O$22.864.42 O $30,713.87

Solution

present value of cash flow =[PVF 7.6%,1 *CF1]+[PVF 7.6%,2 *CF2 ]+....[PVF 7.6%,5]

=[.92937*32900]+[.86372*47790]+[.80272*61890]+[.74602*59490]+[.69333*42390]

= 195304.78

NPV =present value -Initial cost

= 195304.78 - 139040

= 56264.78 [approx to 56264.80]

correct option is \"C\"