Question

A project has the following cash flows:

Year	Cash Flow
0	–$	15,600
1		6,300
2		7,600
3		6,100

   

What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

  

NPV

$

  

What is the NPV at a discount rate of 9 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

NPV

$

  

What is the NPV at a discount rate of 17 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

NPV

$

  

What is the NPV at a discount rate of 30 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

NPV

$

Answer 1

Year	Project Cash Flows (i)	DF@ 0% (ii)	PV of Project A ( (i) * (ii) )	DF@ 9% (iii)	PV of Project A ( (i) * (iii) )	DF@ 17% (iv)	PV of Project A ( (i) * (iv) )	DF@ 30% (v)	PV of Project A ( (i) * (v) )
0	-15600	1	(15,600.00)	1	(15,600.00)	1	(15,600.00)	1	(15,600.00)
1	6300	1.000	6,300.00	0.917	5,779.82	0.855	5,384.62	0.769	4,846.15
2	7600	1.000	7,600.00	0.842	6,396.77	0.731	5,551.90	0.592	4,497.04
3	6100	1.000	6,100.00	0.772	4,710.32	0.624	3,808.66	0.455	2,776.51
		NPV	4,400.00	NPV	1,286.90	NPV	(854.82)	NPV	(3,480.29)

ANS

NPV	0%	4,400.00
NPV	9%	1,286.90
NPV	17%	-854.82
NPV	30%	-3,480.29