A supervisor asks you to advise them on a project's value. The cost of capital is...

A supervisor asks you to advise them on a project's value. The cost of capital is 8.4%

Year	Cash flows
0	-$119,000
1	23,000
2	23,000
3	37,000
4	32,000
5	52,000

The NPV of the project is $____. Round to two decimal places

Expert Solution

Year	Cash flows	PVIF at 8.4%	PV at 8.4%
0	$ -1,19,000	1	$ -1,19,000.00
1	$ 23,000	0.92251	$ 21,217.71
2	$ 23,000	0.85102	$ 19,573.54
3	$ 37,000	0.78508	$ 29,047.84
4	$ 32,000	0.72424	$ 23,175.70
5	$ 52,000	0.66812	$ 34,742.17
			$ 8,756.96
The NPV of the project =		$ 8,756.96
Note:
PVIF = 1/1.084^t.
For t=1, PVIF = 1/1.084^1 =		0.92251

jeff jeffy answered 1 month ago

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