Question
In: Finance
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
Solutions
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 6 months agoRelated Solutions
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show how to do this in excel and the excel formulas
You have to show what the excel formulas are pls
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indicated by a minus sign. Do not round
intermediate calculations and round your final answer to 2 decimal
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0
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