A project has an initial cash outflow of $8,940 and produces cash inflows of $3,007, $3,392,...

A project has an initial cash outflow of $8,940 and produces cash inflows of $3,007, $3,392, and $3,993 for Years 1 through 3, respectively. What is the NPV at a discount rate of 13.9 percent? Do not round intermediate calculations and round your answer to the nearest cent.

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Expert Solution

NPV = -Initial cash outflow + Present value of cash flows

NPV = -$8,940 + $3,007/1.139 + $3,392/1.139^2 + $3,993/1.139^3

NPV = -$983.08

jeff jeffy answered 1 year ago

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