In: Finance
Calculate the NPV of a 20-year project with a cost of $300,000 and annual cash flows of $25,000 in years 1-10 and $50,000 in years 11-20. The company's required rate of return is 10%
Ans:-Net Present Value = Present Value of cash flows - Initial Investment. we will use the NPV function of excel to find the Present Value and then subtract with the initial investment to get the Net Present value.
Therefore, the NPV of the project is approx -$27,935.99.
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