Question

In: Finance

calculate the NPV for the following: the project costs $50,000 upfront and cash flow is $13,000...

calculate the NPV for the following: the project costs $50,000 upfront and cash flow is $13,000 per year for the next six years. Use a 9% discount rate.

Solutions

Expert Solution

NPV=Present value of cash inflow-Present value of cash outflow

NPV=8316.94

Here NPV is positive so the project is acceptable


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