A project has an initial cost of $26,000, a discount rate of 11.7 percent, a...

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Finance

A project has an initial cost of $26,000, a discount rate of 11.7 percent, a life of 5 years, and an NPV of $11,216. Given this, you know that the project is expected to earn a return:

equal to 11.7 percent of $26,000 plus an additional $11,216.

of $11,216 in total

equal to 11.7 percent of $37,216 (= $26,000 + 11,216).

of 11.7 percent of $11,216

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