medium · Principles of Finance capital-budgeting
A logistics company is evaluating a new project that requires an initial investment of $1,000. The project is expected to generate a cash inflow of $600 at the end of year 1 and $600 at the end of year 2.
If the cost of capital is 10%, what is the Net Present Value (NPV) of the project?
- $41.32
- $200.00
- $90.91
- $1,041.32
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