Can you please tell me if I am right on this? I believe the answer is c. $4,264.
A project has an initial outflow of $10,000. The project will generate free cash flows of $8,000 per year for two years. The discount rate is 8%. What is this project’s net present value (NPV)?
a. $4,250
b. $6,000
c.$4,264
d.$16,000
e. $8,000