Reed Enterprises 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:10.00% Year0
1
2
3
Cash flows?$1,050
$450
$460
$470
A. $92.37
B. $96.99
C. $101.84
D. $106.93
E. $112.28
Answer: A
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