Compute the NPV statistics for Project Y and advise whether the firm should acce

Question

Compute the NPV statistics for Project Y and advise whether the firm should accept or reject with the cash flows shown in the chart if the appropriate cost of capital is 12%.

Project Y

Time                                                0                          1                     2                     3                  4

Cash Flow                                 -$11,000              $3,350           $4,180          $1,520        $2,000

In addition to your solution to each computational problem, you must show the supporting work leading to your solution to receive credit for your answer.

Explanation / Answer

AS WE CAN SEE THA NET PRESENT VALUE IS -2324, THE PROJECT SHOULD NOT BE AACEPTED

YEAR CASH FLOW PV FACTOR PV 0 -11000 1 -11000 1 3350 0.893 2991 2 4180 0.797 3332 3 1520 0.712 1082 4 2000 0.636 1271 -2324

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.