In: Finance
NPV
Project K costs $40,000, its expected cash inflows are $13,000 per year for 12 years, and its WACC is 11%. What is the project's NPV? Round your answer to the nearest cent.
$
Year | Cash flow | PVIF@11% | Present value |
0 | $ (40,000) | 1.000 | $ (40,000.00) |
1 | $ 13,000 | 0.901 | $ 11,711.71 |
2 | $ 13,000 | 0.812 | $ 10,551.09 |
3 | $ 13,000 | 0.731 | $ 9,505.49 |
4 | $ 13,000 | 0.659 | $ 8,563.50 |
5 | $ 13,000 | 0.593 | $ 7,714.87 |
6 | $ 13,000 | 0.535 | $ 6,950.33 |
7 | $ 13,000 | 0.482 | $ 6,261.56 |
8 | $ 13,000 | 0.434 | $ 5,641.04 |
9 | $ 13,000 | 0.391 | $ 5,082.02 |
10 | $ 13,000 | 0.352 | $ 4,578.40 |
11 | $ 13,000 | 0.317 | $ 4,124.68 |
12 | $ 13,000 | 0.286 | $ 3,715.93 |
Net present value | $ 44,400.63 |