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A project has the following cash flows. This project is of average risk and the WACC...

A project has the following cash flows. This project is of average risk and the WACC is 0.1. Find the Net Present Value. Round your answer to two decimal places.

Year 0 Year 1 Year 2 Year 3

Cash Flow -$91 $50 $40 $7

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Expert Solution

rate 10.0000% 10%
Cash flows Year Discounted CF= cash flows/(1+rate)^year Cumulative cash flow
                   (91.00) 0                                   (91.00)                                (91.00)
                   50.000 1                                     45.45                                (45.55)
                   40.000 2                                     33.06                                (12.49)
                     7.000 3                                        5.26                                  (7.23)

NPV = -7.23

jeff jeffy answered 1 year ago
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