You have the following information on a project's cash flows. The cost of capital is 8.0%

Year	Cash flows
0	-$101,000
1	23,000
2	23,000
3	25,000
4	32,000
5	61,000

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

Expert Solution

Calculation of NPV:

Year	Cash flows	Discount factor	Present Value
a	b	c=1.08^-a	d=b*c
0	$ -1,01,000	1.0000	$ -1,01,000.00
1	$ 23,000	0.9259	$ 21,296.30
2	$ 23,000	0.8573	$ 19,718.79
3	$ 25,000	0.7938	$ 19,845.81
4	$ 32,000	0.7350	$ 23,520.96
5	$ 61,000	0.6806	$ 41,515.58

	NPV		$ 24,897.43

jeff jeffy answered 2 years ago

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