Project K costs $60,000, it\'s expected cash inflows are $15,000 per year for 9

Question

Project K costs $60,000, it's expected cash inflows are $15,000 per year for 9 years, and it's WACC is 11%. What is the project's NPV? Round your answer to the nearest cent. Project K costs $60,000, it's expected cash inflows are $15,000 per year for 9 years, and it's WACC is 11%. What is the project's NPV? Round your answer to the nearest cent. Project K costs $60,000, it's expected cash inflows are $15,000 per year for 9 years, and it's WACC is 11%. What is the project's NPV? Round your answer to the nearest cent.

Explanation / Answer

Year Cash flows PVF@11% Present value 0 $   -60,000 1.000 $          -60,000 1 $     15,000 0.901 $            13,514 2 $     15,000 0.812 $            12,174 3 $     15,000 0.731 $            10,968 4 $     15,000 0.659 $              9,881 5 $     15,000 0.593 $              8,902 6 $     15,000 0.535 $              8,020 7 $     15,000 0.482 $              7,225 8 $     15,000 0.434 $              6,509 9 $     15,000 0.391 $              5,864 Net present value $            23,056

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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