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What is the NPV of this project if the required rate is 7%? Year       CF 0         ...

What is the NPV of this project if the required rate is 7%?

Year       CF
0          -$1312
1           $743
2           $1757
3           $2148

Solutions

Expert Solution

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

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