Artie’s Soccer Ball Company is considering a project with the following cash flows: - 4009

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Artie’s Soccer Ball Company is considering a project with the following cash flows: Initial outlay = $750,000 Incremental after-tax cash flows from operations Years 1–4 = $250,000 per year Compute the NPV of this project if the company’s discount rate is 12%. 

A. 

$2,534

B. 

$4,337

C. 

$7,758

D. 

$9,337

Solution Description

 Artie’s Soccer Ball Company is considering a project with the following cash flows: Initial outlay = $750,000 Incremental after-tax cash flows from operations Years 1–4 = $250,000 per year Compute the NPV of this project if the company’s discount rate is 12%.