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Project B has the following Cash Flows: Cost = $800,000; Year 1 = $329,000; Year 2...

Project B has the following Cash Flows: Cost = $800,000; Year 1 = $329,000; Year 2 = $260,750; Year 3 = $192,500; Year 4 = $147,000; Year 5 = $101,500. Calculate the Net Present Value when using a WACC of 8.28%.

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Ans $ 52995.37

Year Project Cash Flows (i) DF@ 8.28% DF@ 8.28% (ii) PV of Project ( (i) * (ii) )
0 -800000 1 1                       (8,00,000.00)
1 329000 1/((1+8.28%)^1) 0.923532                         3,03,841.89
2 260750 1/((1+8.28%)^2) 0.852911                         2,22,396.44
3 192500 1/((1+8.28%)^3) 0.787690                         1,51,630.30
4 147000 1/((1+8.28%)^4) 0.727456                         1,06,936.10
5 101500 1/((1+8.28%)^5) 0.671829                             68,190.65
NPV                             52,995.37

jeff jeffy answered 1 year ago
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