Question
In: Finance
Projects X has the following expected net cash flows: Year Project X 0 $-160,000 1 90,000...
Projects X has the following expected net cash flows:
Year Project X
0 $-160,000
1 90,000
2 60,000
3 35,000
4 30,000
If the required rate of return is 12 percent, what is the net present value for the Project X?
a.$ 18,578
b$ 16,533
c$ 10,250
d$ 12,167
e$ 20,968
Solutions
Expert Solution
Ans d$ 12,167
| Year | Project Cash Flows (i) | DF@ 12% | DF@ 12% (ii) | PV of Project ( (i) * (ii) ) |
| 0 | -160000 | 1 | 1 | (1,60,000) |
| 1 | 90000 | 1/((1+12%)^1) | 0.892857 | 80,357 |
| 2 | 60000 | 1/((1+12%)^2) | 0.797194 | 47,832 |
| 3 | 35000 | 1/((1+12%)^3) | 0.711780 | 24,912 |
| 4 | 30000 | 1/((1+12%)^4) | 0.635518 | 19,066 |
| NPV | 12,167 |
jeff jeffy answered 1 year agoRelated Solutions
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