Yoga Center Inc. 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.
r:14.00% Year0
1
2
3
4
Cash flows?$1,200
$400
$425
$450
$475
A. $41.25
B. $45.84
C. $50.93
D. $56.59
E. $62.88
Answer: E
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