Problem: What is the net present value of a project that has an initial cash outflow of $12,670 and the following cash inflows? The required return is 11.5%.
Year Cash Inflows
1 $4,375
2 $0
3 $8,750
4 $4,100
a) $218.68
b) $370.16
c) $768.20
d) $1,249.65
e) $1,371.02