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25 November, 22:43

Project Marvel is a five-year project. The project has a total cash inflow of $350,000. The present value of such inflows is $275,000. The project requires an initial investment of $200,000 and additional working capital of $25,000. What is the net present value of the project?

a.$0

b.$50,000

c. ($50,000)

d. ($250,000)

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Answers (1)
  1. 25 November, 22:55
    0
    The net present value of the project is $ 50,000

    Explanation:

    Present value of cash inflows 275,000

    Less: Initial investment 200,000

    Less: Workin capital needed 25,000

    Net present value 50,000

    The net present value of the project is $ 50,000
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