CPA Canada Core 2
CPA Professional Education Program (PEP) — Core 2: Management Accounting, Planning and Control
Capital BudgetingEnglish
Exam overviewPractice session
A project requires an initial investment of $500,000 and returns net cash inflows of $150,000 per year for 5 years. Using a discount rate of 10%, the NPV is positive if the present value of inflows exceeds $500,000. The present value factor for a 5-year annuity at 10% is 3.7908. What is the NPV?
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