Dickson Co A) $25015
B) $277

Dickson Co. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected. $\begin{array}{lcccccc}r & 12.00 \% & & & & & \\\text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \\ \text { Cash flows }& -\$ 1,100 & \$ 400 & \$ 390 & \$ 380 & \$ 370 & \$ 360\end{array}$

A) $250.15
B) $277.94
C) $305.73
D) $336.31
E) $369.94

Correct Answer:

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