In: Finance
1) A project has an initial cost of $65,350, expected net cash
inflows of $14,000 per year for 11 years, and a cost of capital of
8%. What is the project's NPV? (Hint: Begin by
constructing a timeline.) Do not round intermediate calculations.
Round your answer to the nearest cent
Solution :
The Net Present value of the project is = $ 34,595.50
The timeline of the cash flows is as follows :
Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.