Time Period that Maximizes the NPV Assignment

Leisure Included is evaluating a endeavor that requires an preliminary funding of $5,000 depreciated straight line over 5 years. The endeavor has the following cash flows and abandonment values are the endeavor’s e e book values at assorted elements all by its bodily life. What is the time interval that maximizes the NPV? The company worth of capital is 10%.

zero12three45
CASH FLOWS($5,000)$1,000$2,000$three,000$1,500$1,000

Group of reply alternatives

1 12 months

three years

4 years

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