A project's initial investment is $297,500 and its required rate of return is 11 percent. Cash...

A project's initial investment is $297,500 and its required rate of return is 11 percent. Cash flows are $100,000, $200,000, and $150,000, at year's end 1, 2, and 3. What is the project's NPV?

Expert Solution

Ans $ 64593.28

Year	Project Cash Flows (i)	DF@ 11%	DF@ 11% (ii)	PV of Project ( (i) * (ii) )
0	-297500	1	1	(2,97,500.00)
1	100000	1/((1+11%)^1)	0.900901	90,090.09
2	200000	1/((1+11%)^2)	0.811622	1,62,324.49
3	150000	1/((1+11%)^3)	0.731191	1,09,678.71
		NPV	64,593.28

jeff jeffy answered 1 year ago

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