The cash flows and discount rate for projects a, b, c, and d are expected to be:
The cash flows and discount rate for projects a, b, c, and d are expected to be:
Project: a. b. c. d.
Year 0 – 1,000 -1,500 -500 -2,000
Year 1 400 500 100 600
Year 2 400 500 300 800
Year 3 400 700 250 200
Year 4 400 200 200 300
Discount rate 10% 12% 15% 8%
What is the NPV for project a?