Question
In: Finance
What is the net present value of a project that has an initial cash outflow of...
What is the net present value of a project that has an initial cash outflow of $-13,000, at time 0, and the following cash flows for years 1-4? The required return is 10.0%. DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ENTER YOUR ANSWER TO THE NEAREST DOLLAR (e.g. 1250). Year Cash Flows 1 $3,950 2 $3,750 3 $5,900 4 $6,400
Solutions
Expert Solution
| Calculation of net present value of project : | |||
| Time | Cashflow | PVF @10% | PV |
| - | -13000 | 1.00 | -13,000.00 |
| 1.00 | 3950 | 0.9091 | 3,590.91 |
| 2.00 | 3750 | 0.8264 | 3,099.17 |
| 3.00 | 5900 | 0.7513 | 4,432.76 |
| 4.00 | 6400 | 0.6830 | 4,371.29 |
| 2,494.13 | |||
| Net present value of Project is 2494 | |||
jeff jeffy answered 11 months agoRelated Solutions
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