Project B cost $4,900 and will generate after-tax net cash inflows of $400 in year one, $1,200 in year two, $1,900 in year three, $2,400 in year four, and $2,100 in year five. What is the NPV using 8% as the discount rate? Round your present value factor to three decimal places and the rest to nearest dollar.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
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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Project B cost $4,900 and will generate after-tax net cash inflows of $400 in year one, $1,200 in year two, $1,900 in year three, $2,400 in year four, and $2,100 in year five. What is the NPV using 8% as the discount rate? Round your present value factor to three decimal places and the rest to nearest dollar.

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