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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
0
-$5334
1
$8301
2
$4682
3
$9112
4
$20025
5
$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 6 months ago
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