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A project has an initial cost of $ 42,000, expected net cash inflows of $ 9,000...

A project has an initial cost of $ 42,000, expected net cash inflows of $ 9,000 per year for 7 years, and a cost of capital of 12%. What is the project’s NPV ? Please show the steps of your work.

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Expert Solution

NPV is the difference between the Present Value of a Company's cash inflows and Present Value of Cash outflows over a given time period. Cost of capital and Time period will affect the calculations of NPV of a company.

Please find out the uploaded attachment, for the calculation of NPV by using the given datas.

Thank you..

jeff jeffy answered 1 year ago
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