In: Finance
What is the NPV of this project if the required rate is 7%?
Year CF
0
-$1312
1
$743
2
$1757
3
$2148
Ans $ 2670.43
| Year | Project Cash Flows (i) | DF@ 7% | DF@ 7% (ii) | PV of Project A ( (i) * (ii) ) |
| 0 | -1312 | 1 | 1 | (1,312.00) |
| 1 | 743 | 1/((1+7%)^1) | 0.935 | 694.39 |
| 2 | 1757 | 1/((1+7%)^2) | 0.873 | 1,534.63 |
| 3 | 2148 | 1/((1+7%)^3) | 0.816 | 1,753.41 |
| NPV | 2,670.43 | |||