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Project L requires an initial outlay at t = 0 of $55,000, its expected cash inflows...

Project L requires an initial outlay at t = 0 of $55,000, its expected cash inflows are $11,000 per year for 9 years, and its WACC is 10%. What is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $

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Ans $ 8349.26

Year Project Cash Flows (i) DF@ 10% DF@ 10% (ii) PV of Project ( (i) * (ii) )
0 -55000 1 1                   (55,000.00)
1 11000 1/((1+10%)^1) 0.909                     10,000.00
2 11000 1/((1+10%)^2) 0.826                       9,090.91
3 11000 1/((1+10%)^3) 0.751                       8,264.46
4 11000 1/((1+10%)^4) 0.683                       7,513.15
5 11000 1/((1+10%)^5) 0.621                       6,830.13
6 11000 1/((1+10%)^6) 0.564                       6,209.21
7 11000 1/((1+10%)^7) 0.513                       5,644.74
8 11000 1/((1+10%)^8) 0.467                       5,131.58
9 11000 1/((1+10%)^9) 0.424                       4,665.07
NPV                       8,349.26

jeff jeffy answered 7 months ago
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