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Elink of an Eye Company is evalung a5 year project that will provide cath tows of $34500, $55.950 162.250, $59 930 and 42.910
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Answer #1

Project cash flows:

Initial cost = 149920

CF1 = 34500

CF2 = 55950

CF3 = 62210

CF4 = 59930

CF5 = 42910

Required rate (r) = 8%

NPV = Sum of present value of cash inflows - Initial cost

= 34500/(1+8%)^1 + 55950/(1+8%)^2 + 62210/(1+8%)^3 + 59930/(1+8%)^4 + 42910/(1+8%)^5 - 149920

= $52,631.02

Correct Choice D

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