A project has the following cash flows: Year Cash Flow 0 –$ 16,100 1 6,800 2 8,1

Question

A project has the following cash flows: Year Cash Flow 0 –$ 16,100 1 6,800 2 8,100 3 6,600 What is the NPV at a discount rate of zero percent? NPV $ What is the NPV at a discount rate of 11 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) NPV $ What is the NPV at a discount rate of 20 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)) 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 final answer to 2 decimal places. (e.g., 32.16)) NPV $ HintsReferenceseBook & Resources Hint #1

Explanation / Answer

NPV at zero percent = -16100+6800+8100+6600

NPV @ 11%

NPV = -16100 + 6800(1.11)-1 + 8100(1.11)-2 +6600(1.11)-3

NPV = 1426.13

NPV @ 20%

NPV = -988.89

NPV@29%

NPV = -$2886.89

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