In: Finance
What is the net present value of Project X if it has the following after tax cash flows? The interest rate is 6%
End of year 1 = ($300) End of year 2 = $500 End of year 3 = $900
Please show equation that is easy to understand, able to put into TI-84.
Year | Cash flow | PVF @6% | PV(CF*PVF) |
1 | (300.00) | 0.9434 | (283.0200) |
2 | 500.00 | 0.8900 | 445.0000 |
3 | 900.00 | 0.8396 | 755.6400 |
NPV | 917.6200 |
Note : PVF @R % = 1/(1+R)^n where "n" is number of year and "R" is Discounting rate