What is the net present value of a capital investment project that has the following, after-tax...

What is the net present value of a capital investment project that has the following, after-tax cash flows for a company that requires a 14% rate of return on the project?

Time- 0 1 2 3

Cash Flow- 3,800 500 1,700 7,200

Expert Solution

Ans NPV = $ 2806.49

Year	Project Cash Flows (i)	DF@ 14%	DF@ 14% (ii)	PV of Project ( (i) * (ii) )
0	-3800	1	1	(3,800.00)
1	500	1/((1+14%)^1)	0.877193	438.60
2	1700	1/((1+14%)^2)	0.769468	1,308.09
3	7200	1/((1+14%)^3)	0.674972	4,859.79
		NPV	2,806.49

jeff jeffy answered 2 years ago

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