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A Company Is Considering an Iron Ore Extraction Project That

Question 94

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A company is considering an iron ore extraction project that requires an initial investment of $518,000 and will yield annual cash inflows of $158,000 for four years.The company's discount rate is 9%.What is the NPV of the project?
Present value of an ordinary annuity of $1:
A company is considering an iron ore extraction project that requires an initial investment of $518,000 and will yield annual cash inflows of $158,000 for four years.The company's discount rate is 9%.What is the NPV of the project? Present value of an ordinary annuity of $1: A) $6,080 B) $(103,600) C) $103,600 D) $(6,080)


A) $6,080
B) $(103,600)
C) $103,600
D) $(6,080)

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