Avalon Aviation Products is evaluating a new project. What is the net present value of this...

Avalon Aviation Products is evaluating a new project.

What is the net present value of this project if the discount rate is 12% and the net cash flows are as per the following table?

Year

Cashflow

-$5334

$8301

$4682

$9112

$20025

$24873

Solutions

Expert Solution

NPV is calculated below:
Year	Cash flow	PVIF at 12%	PV at 12%
0	$ -5,334	1	$ -5,334
1	$ 8,301	0.89286	$ 7,412
2	$ 4,682	0.79719	$ 3,732
3	$ 9,112	0.71178	$ 6,486
4	$ 20,025	0.63552	$ 12,726
5	$ 24,873	0.56743	$ 14,114
			$ 39,136
NPV =	$ 39,136

jeff jeffy answered 2 months ago

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