A company. has a project available with the following cash flows: Year Cash Flow 0 −$34,310...

A company. has a project available with the following cash flows: Year Cash Flow 0 −$34,310 1 12,780 2 14,740 3 20,150 4 11,420 If the required return for the project is 8.6 percent, what is the project's NPV?

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Expert Solution

Ans $ 13898.01

Year	Project Cash Flows (i)	DF@ 8.6%	DF@ 8.6% (ii)	PV of Project A ( (i) * (ii) )
0	-34310	1	1	(34,310.00)
1	12780	1/((1+8.6%)^1)	0.921	11,767.96
2	14740	1/((1+8.6%)^2)	0.848	12,497.92
3	20150	1/((1+8.6%)^3)	0.781	15,732.06
4	11420	1/((1+8.6%)^4)	0.719	8,210.07
		NPV		13,898.01

jeff jeffy answered 9 months ago

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