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What is the net present value (NPV) of a project that has an initial cash outflow...

What is the net present value (NPV) of a project that has an initial cash outflow of $19,851, at time 0, and the following cash inflows? The required return is 13.0%.  DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND ANSWER TO THE NEAREST DOLLAR.

Year Cash Flow
1 $5,423
2 $7,483
3 $7,107
4 $6,010

Solutions

Expert Solution

Ans -580.05

Year Project Cash Flows (i) DF@ 13% DF@ 13% (ii) PV of Project ( (i) * (ii) )
0 -19851 1 1                   (19,851.00)
1 5423 1/((1+13%)^1) 0.885                       4,799.12
2 7483 1/((1+13%)^2) 0.783                       5,860.29
3 7107 1/((1+13%)^3) 0.693                       4,925.51
4 6010 1/((1+13%)^4) 0.613                       3,686.05
NPV                         (580.05)

jeff jeffy answered 4 months ago
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