Question

Project Z has an initial investment of $73,431.00 . The project is expected to have cash inflows of $29,499.00 at the end of each year for the next 13.0 years. The corporation has a WACC of 11.55%. Calculate the NPV for project Z.

Answer 1

Ans $ 120294.94

Year	Project Cash Flows (i)	DF@ 11.55%	DF@ 11.55% (ii)	PV of Project ( (i) * (ii) )
0	-73431	1	1	(73,431.00)
1	29499	1/((1+11.55%)^1)	0.896459	26,444.64
2	29499	1/((1+11.55%)^2)	0.803639	23,706.54
3	29499	1/((1+11.55%)^3)	0.720429	21,251.94
4	29499	1/((1+11.55%)^4)	0.645835	19,051.49
5	29499	1/((1+11.55%)^5)	0.578965	17,078.88
6	29499	1/((1+11.55%)^6)	0.519018	15,310.52
7	29499	1/((1+11.55%)^7)	0.465278	13,725.25
8	29499	1/((1+11.55%)^8)	0.417103	12,304.12
9	29499	1/((1+11.55%)^9)	0.373916	11,030.14
10	29499	1/((1+11.55%)^10)	0.335200	9,888.07
11	29499	1/((1+11.55%)^11)	0.300493	8,864.25
12	29499	1/((1+11.55%)^12)	0.269380	7,946.44
13	29499	1/((1+11.55%)^13)	0.241488	7,123.65
		NPV	1,20,294.94