8.2-15 Question Help The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $440,000. The Sisyphean Company expects cash inflows from this project as detailed below: Year 1 Year 2 Year 3 Year 4 $200,000 $225,000 $275,000 $200,000 The appropriate discount rate for this project is 15%. The net present value (NPV) for this project is closest to: A. $199,213 B. $498,032 C. $209,174 D. $139,449

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...
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8.2-15
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The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $440,000. The Sisyphean Company
expects cash inflows from this project as detailed below:
Year 1
Year 2
Year 3
Year 4
$200,000
$225,000
$275,000
$200,000
The appropriate discount rate for this project is 15%.
The net present value (NPV) for this project is closest to:
A. $199,213
B. $498,032
C. $209,174
D. $139,449
Transcribed Image Text:8.2-15 Question Help The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $440,000. The Sisyphean Company expects cash inflows from this project as detailed below: Year 1 Year 2 Year 3 Year 4 $200,000 $225,000 $275,000 $200,000 The appropriate discount rate for this project is 15%. The net present value (NPV) for this project is closest to: A. $199,213 B. $498,032 C. $209,174 D. $139,449
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