A project has the following cash flows: Year Cash Flow 0 –$ 15,800 1 6,500 2 7,8

Question

A project has the following cash flows: Year Cash Flow 0 –$ 15,800 1 6,500 2 7,800 3 6,300 What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) NPV $ What is the NPV at a discount rate of 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ What is the NPV at a discount rate of 18 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ What is the NPV at a discount rate of 29 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $

Explanation / Answer

Statemnet showing Cash flows Particulars Time PVf@0% Amount PV Cash Outflows                                  -                        1.00       (15,800.00)              (15,800.00) PV of Cash outflows              (15,800.00) Cash inflows                           1.00                 1.0000           6,500.00                  6,500.00 Cash inflows                           2.00                 1.0000           7,800.00                  7,800.00 Cash inflows                           3.00                 1.0000           6,300.00                  6,300.00 PV of Cash Inflows                20,600.00 NPV                  4,800.00 Statemnet showing Cash flows Particulars Time PVf@10% Amount PV Cash Outflows                                  -                        1.00       (15,800.00)              (15,800.00) PV of Cash outflows              (15,800.00) Cash inflows                           1.00                 0.9091           6,500.00                  5,909.09 Cash inflows                           2.00                 0.8264           7,800.00                  6,446.28 Cash inflows                           3.00                 0.7513           6,300.00                  4,733.28 PV of Cash Inflows                17,088.66 NPV                  1,288.66 Statemnet showing Cash flows Particulars Time PVf@18% Amount PV Cash Outflows                                  -                        1.00       (15,800.00)              (15,800.00) PV of Cash outflows              (15,800.00) Cash inflows                           1.00                 0.8475           6,500.00                  5,508.47 Cash inflows                           2.00                 0.7182           7,800.00                  5,601.84 Cash inflows                           3.00                 0.6086           6,300.00                  3,834.37 PV of Cash Inflows                14,944.69 NPV                    (855.31) Statemnet showing Cash flows Particulars Time PVf@29% Amount PV Cash Outflows                                  -                        1.00       (15,800.00)              (15,800.00) PV of Cash outflows              (15,800.00) Cash inflows                           1.00                 0.7752           6,500.00                  5,038.76 Cash inflows                           2.00                 0.6009           7,800.00                  4,687.22 Cash inflows                           3.00                 0.4658           6,300.00                  2,934.75 PV of Cash Inflows                12,660.73 NPV                (3,139.27)

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