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A firm evaluates all of its projects by applying the NPV decision rule. A project under...

A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flows 0 -3477 1 1468 2 2290 3 1948 What is the NPV for the project if the required return is 11 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

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Ans $ 1128.50

Year Project Cash Flows (i) DF@ 11% DF@ 11% (ii) PV of Project A ( (i) * (ii) )
0 -3477 1 1                      (3,477.00)
1 1468 1/((1+11%)^1) 0.901                       1,322.52
2 2290 1/((1+11%)^2) 0.812                       1,858.62
3 1948 1/((1+11%)^3) 0.731                       1,424.36
NPV                       1,128.50

jeff jeffy answered 1 year ago
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