In: Finance
A project has an initial cost of $64,675, expected net cash inflows of $12,000 per year for 10 years, and a cost of capital of 13%. What is the project's NPV?
NPV = PV of Cash Inflows - PV of Cash Outflows
Year | CF | PVF @13% | Disc CF |
0 | $ -64,675.00 | 1.0000 | $ -64,675.00 |
1 | $ 12,000.00 | 0.8850 | $ 10,619.47 |
2 | $ 12,000.00 | 0.7831 | $ 9,397.76 |
3 | $ 12,000.00 | 0.6931 | $ 8,316.60 |
4 | $ 12,000.00 | 0.6133 | $ 7,359.82 |
5 | $ 12,000.00 | 0.5428 | $ 6,513.12 |
6 | $ 12,000.00 | 0.4803 | $ 5,763.82 |
7 | $ 12,000.00 | 0.4251 | $ 5,100.73 |
8 | $ 12,000.00 | 0.3762 | $ 4,513.92 |
9 | $ 12,000.00 | 0.3329 | $ 3,994.62 |
10 | $ 12,000.00 | 0.2946 | $ 3,535.06 |
NPV | $ 439.92 |
pls comment, if any further assistance is required