Exam4Training

What is the NPV of continuing with this project?

A project has been evaluated on the basis that it will cost $22 million and will have a net present value of $4.3 million The project has commenced and $5 million of the $22 million has been invested. A problem has been discovered that will cost an additional $4.5 million to rectify. The $4.5 million will be payable immediately.

What is the NPV of continuing with this project?
A . -$5million
B . -$0.2million
C . $1million
D . $4.8million

Answer: D

Exit mobile version