In: Finance
Living Colour Co. has a project available with the following cash flows: Year Cash Flow 0 −$32,510 1 8,450 2 10,210 3 14,680 4 16,250 5 11,300 If the required return for the project is 9.5 percent, what is the project's NPV?
$28,380.00
$15,296.43
$14,499.75
$6,206.31
$13,384.38
Calculation of NPV | |||
Year | Cashflows | PVF @9.5% | Present value |
0 | -32,510.00 | 1 | -32,510.00 |
1 | 8,450.00 | 0.913 | 7,716.89 |
2 | 10,210.00 | 0.834 | 8,515.25 |
3 | 14,680.00 | 0.762 | 11,181.08 |
4 | 16,250.00 | 0.696 | 11,303.08 |
5 | 11,300.00 | 0.635 | 7,178.07 |
NPV | 13,384.38 | ||
So correct answer is $ 13384.38 |