Determine the net present value of the expected net cash flows from the next project,...

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Finance

Determine the net present value of the expected net cash flows from the next project, which has an initial investment of $ 50,000. Use an effective annual interest rate of 10%.

Year Cash Flow
0 -50,000
1 15,625
2 15,625
3 15,625
4 15,625
5 15,625

Options:

a) 1,538.51

b) 28,125

c) 59,231.04

d) 9,231.04

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