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Compute the NPV for Project M if the appropriate cost of capital is 9 percent. (Negative...

Compute the NPV for Project M if the appropriate cost of capital is 9 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)

Project M Time: 0 1 2 3 4 5 Cash flow: –$1,800 $510 $640 $680 $760 $260

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Expert Solution

Ans NPV = $ 439.04

Year Project Cash Flows (i) DF@ 9% DF@ 9% (ii) PV of Project ( (i) * (ii) )
0 -1800 1 1                      (1,800.00)
1 510 1/((1+9%)^1) 0.917                           467.89
2 640 1/((1+9%)^2) 0.842                           538.68
3 680 1/((1+9%)^3) 0.772                           525.08
4 760 1/((1+9%)^4) 0.708                           538.40
5 260 1/((1+9%)^5) 0.650                           168.98
NPV                           439.04

jeff jeffy answered 5 months ago
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