easy · Principles of Finance capital-budgeting

You are evaluating a project with an initial investment of 10,000. It is expected to generate a single cash flow of 11,500 exactly one year from today.

If the required rate of return is 10%, what is the Net Present Value (NPV)?

  1. $10,454.55
  2. $500.00
  3. $454.55
  4. $1,500.00

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