1. 1. What is the net present value of a project with the following cash flows a
ID: 2742762 • Letter: 1
Question
1.
1.
What is the net present value of a project with the following cash flows and a required return of 12 percent?
Year
Cash Flow
0
–$35,600
1
12,450
2
22,530
3
2,600
$4,450.45
-$4,672.52
-$4,450.45
$4,672.52
-$6,596.89
2. . What is the NPV of the following set of cash flows at a discount rate of zero percent? What if the discount rate is 15 percent?
year Cash Flow A Cash Flow B
-$41,700; -$8,665.07
-$41,700; $1,208.19
$0; $1,208.19
$2,500; $1,208.19
$2,500; -$8,665.07
What is the net present value of a project with the following cash flows and a required return of 12 percent?
Explanation / Answer
1.
Net present value =-35600+12450/1.12^1+22530/1.12^2+2600/1.12^3=-4672.52
we do first question as per chegg guidlines.
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