59.)An investment opportunity costing $75,000 is expected to yield net cash flows of $23,000 annually for five years. The NPV of the investment at a cutoff rate of 14% would be Group of answer choices$(3,959). $78,959. $75,000. $3,959.

59.)An investment opportunity costing $75,000 is expected to yield net cash flows of $23,000 annually for five years. The NPV of the investment at a cutoff rate of 14% would be Group of answer choices$(3,959). $78,959. $75,000. $3,959.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

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Question

$78,959.

$75,000.

$3,959.

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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