You have been offered to invest in a business project. The project would require you...

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Finance

You have been offered to invest in a business project. The project would require you to make an initial outlay of 1211 SEK today, and you would receive a positive cash flow of 678 SEK year 1 and 258 SEK year 2. The project will be sold for 500 SEK after 2 years when you finish it. Calculate the NPV, assuming a discount rate of 11.8 percent.

(Answers are rounded to the nearest integer) a) -271 SEK b) -710 SEK c) 1294 SEK d) 705 SEK e) 115 SEK

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