Question

A project has the following cash flows: Year Cash Flow 0 –$ 16,100 1 6,800 2 8,100 3 6,600 What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) NPV $ What is the NPV at a discount rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ What is the NPV at a discount rate of 20 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ What is the NPV at a discount rate of 29 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $

Answer 1

Statement showing Cash flows
Particulars	Time	PVf 0%	Amount	PV
Cash Outflows	-	1.00	(16,100.00)	(16,100.00)
PV of Cash outflows = PVCO				(16,100.00)
Cash inflows	1.00	1.0000	6,800.00	6,800.00
Cash inflows	2.00	1.0000	8,100.00	8,100.00
Cash inflows	3.00	1.0000	6,600.00	6,600.00
PV of Cash Inflows =PVCI				21,500.00
NPV= PVCI - PVCO				5,400.00
Statement showing Cash flows
Particulars	Time	PVf 11%	Amount	PV
Cash Outflows	-	1.00	(16,100.00)	(16,100.00)
PV of Cash outflows = PVCO				(16,100.00)
Cash inflows	1.00	0.9009	6,800.00	6,126.13
Cash inflows	2.00	0.8116	8,100.00	6,574.14
Cash inflows	3.00	0.7312	6,600.00	4,825.86
PV of Cash Inflows =PVCI				17,526.13
NPV= PVCI - PVCO				1,426.13
Statement showing Cash flows
Particulars	Time	PVf 20%	Amount	PV
Cash Outflows	-	1.00	(16,100.00)	(16,100.00)
PV of Cash outflows = PVCO				(16,100.00)
Cash inflows	1.00	0.8333	6,800.00	5,666.67
Cash inflows	2.00	0.6944	8,100.00	5,625.00
Cash inflows	3.00	0.5787	6,600.00	3,819.44
PV of Cash Inflows =PVCI				15,111.11
NPV= PVCI - PVCO				(988.89)
Statement showing Cash flows
Particulars	Time	PVf 29%	Amount	PV
Cash Outflows	-	1.00	(16,100.00)	(16,100.00)
PV of Cash outflows = PVCO				(16,100.00)
Cash inflows	1.00	0.7752	6,800.00	5,271.32
Cash inflows	2.00	0.6009	8,100.00	4,867.50
Cash inflows	3.00	0.4658	6,600.00	3,074.50
PV of Cash Inflows =PVCI				13,213.32
NPV= PVCI - PVCO				(2,886.68)