Homework Answers
Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=1500/1.09+1500/1.09^2+9000/1.09^3
=9588.32
NPV=Present value of inflows-Present value of outflows
=9588.32-9500
=$88.32(Approx)
Hence the correct option is:
Between $0 and $400
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