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What is the present net value of a project with the following cash flows if the

ID: 2700320 • Letter: W

Question

What is the present net value of a project with the following cash flows if the discount rate is 17 percent?


Year Cash Flow 0 -$59,200 1 21,600 2 28,300 3 14,400 4 7,200

A -$8,406.11 B -$7,231.71 C -$3,089.16 D $1,407.92 E $3,508.01 A -$8,406.11 B -$7,231.71 C -$3,089.16 D $1,407.92 E $3,508.01 What is the present net value of a project with the following cash flows if the discount rate is 17 percent?


Year Cash Flow 0 -$59,200 1 21,600 2 28,300 3 14,400 4 7,200

A -$8,406.11 B -$7,231.71 C -$3,089.16 D $1,407.92 E $3,508.01

Explanation / Answer

NPV = 21600/1.17 + 28300/(1.17^2) + 14400/(1.17^3) + 7200/(1.17^4) - 59200 = -$7231.71



B -$7,231.71
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