You are currently evaluating a project with the following expected cash flows: i

Question

You are currently evaluating a project with the following expected cash flows: initial investment of $-81 in year 0, followed by positive cash flows in years 1 to 4 of $6, $7, $25 and $0, respectively. The WACC is 11%.

What is this projects NPV?

It is recommended that you use at least 4 decimals to do your work, then round the final answer.  Round your answer to 2 decimals. Do not use symbols like percentage (%) or dollar signs ($). If NPV is negative, use the '-' sign when entering your answer. For example, if NPV = $ -50.27, enter -50.27

Explanation / Answer

Year Cash flow PVF@11% Present value 0 $         (81) 1.000 $            (81.00) 1 $              6 0.901 $                5.41 2 $              7 0.812 $                5.68 3 $            25 0.731 $              18.28 4 $             -   0.659 $                     -   Total pesent value -51.63

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

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