(Ignore Income Taxes in This Problem

(Ignore income taxes in this problem.) Congener Beverage Corporation is considering an investment in a project that has an internal rate of return of 20%.The only cash outflow for this project is the initial investment.The project is estimated to have an 8 year life and no salvage value.Cash inflows from this project are expected to be $100,000 per year in each of the 8 years.Congener's discount rate is 16%.What is the net present value of this project?

A) $5,215
B) $15,464
C) $50,700
D) $55,831

Correct Answer:

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