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)

Question

Jazlene York

Business

15 December, 16:40

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)

+1

Answers (1)

Know the Answer?

Libby Fitzpatrick · Answer 1

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