A project has the following cash flows: What is the NPV at a discount rate of ze

Question

A project has the following cash flows: What is the NPV at a discount rate of zero percent? What is the NPV at a discount rate of 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places, (e.g., 32.16)) What is the NPV at a discount rate of 21 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places, (e.g., 32.16)) What is the NPV at a discount rate of 30 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places, (e.g., 32.16))

Explanation / Answer

1)

NPV(@ 0%)=-17000+7700/(1+0%)^1+9000/(1+0%)^2+7500/(1+0%)^3=7200

2)

NPV(@ 10%)=-17000+7700/(1+10%)^1+9000/(1+10%)^2+7500/(1+10%)^3=3072.88

3)

NPV(@ 21%)=-17000+7700/(1+21%)^1+9000/(1+21%)^2+7500/(1+21%)^3=-255.69

4)

NPV(@ 30%)=-17000+7700/(1+30%)^1+9000/(1+30%)^2+7500/(1+30%)^3=-2337.73

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