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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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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 1 year ago
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