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Net present value Using a cost of capital of 11​%, calculate the net present value for...

Net present value Using a cost of capital of 11​%, calculate the net present value for the project shown in the following table and indicate whether it is​ acceptable,

Initial investment

​(CF 0CF0​)

negative 1 comma 143 comma 000−1,143,000

Year

​(t​)

Cash inflows

​(CF Subscript tCFt​)

1

$81,000

2

$138,000

3

$193,000

4

$258,000

5

$311,000

6

$377,000

7

$270,000

8

$98,000

9

$45,000

10

$29,000

The net present value​ (NPV) of the project is _____​$ ​(Round to the nearest​ cent.)

Is the project​ acceptable?  ​

Solutions

Expert Solution

Solution:-

To Calculate NPV of the Project-

The Project is not accepted as Net Present value of the Project is Negative. Project is accepted when NPV of the project is greater than or equal to zero. Hence, Project are not acceptable.

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jeff jeffy answered 1 year ago
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