In: Finance
Compute the NPV statistic for Project U if the appropriate cost of capital is 9 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)
| Project U | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow | –$1,050 | $370 | $1,530 | –$530 | $320 | –$110 |
| rate | 9.0000% | |
| Cash flows | Year | Discounted CF= cash flows/(1+rate)^year |
| (1,050.00) | 0 | (1,050.00) |
| 370.00 | 1 | 339.45 |
| 1,530.00 | 2 | 1,287.77 |
| (530.00) | 3 | (409.26) |
| 320.00 | 4 | 226.70 |
| (110.00) | 5 | (71.49) |
NPV = 323.17