Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. calculate the npv given the following cash? flows

Calculate the NPV given the following cash? flows YEAR   CASH FLOWS 0 -60,000 1 25,000 2 25,000 3 15,000 4 15,000 5...

Free

70.2K

Verified Solution

Question

Finance

Calculate the NPV given the following cash? flows

YEAR   CASH FLOWS
0 -60,000
1 25,000
2 25,000
3 15,000
4 15,000
5 10,000
6   10,000

if the appropriate required rate of return is 8 percent. Shouldthe project be? accepted? What is the? project's NPV??

Answer & Explanation Solved by verified expert
4.4 Ratings (754 Votes)

Ans $ 20622.08

Since NPV is positive, the project must be accepted.

Year Project Cash Flows (i) DF@ 8% DF@ 8% (ii) PV of Project ( (i) * (ii) )
0 -60000 1 1                    (60,000.00)
1 25000 1/((1+8%)^1) 0.926                     23,148.15
2 25000 1/((1+8%)^2) 0.857                     21,433.47
3 15000 1/((1+8%)^3) 0.794                     11,907.48
4 15000 1/((1+8%)^4) 0.735                     11,025.45
5 10000 1/((1+8%)^5) 0.681                       6,805.83
6 10000 1/((1+8%)^6) 0.630                       6,301.70
NPV                     20,622.08

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Calculate the NPV given the following cash? flowsYEAR   CASH FLOWS0 -60,0001 25,0002 25,0003 15,0004 15,0005 10,0006   10,000if the appropriate required rate of return is 8 percent. Shouldthe project be? accepted? What is the? project's NPV??

Other questions asked by students

Basic Math
1.2K views

Truckloads of waste contaminated with cadmium may either be sent to a sanitary landfill or a...

Medical Sciences
1.2K views

If you wanted to determine the tubular maximum for glucose reabsorption, and you could measure amount...

Biology
1.2K views

36 A Definitions of Ludus B How did learning the definition of Ludus in school...

Biology
1.2K views

Which of the following applies to a hypothesis Select one Oa A proposed explanation based...

Physics
1.2K views

INMOTION gpb org physics motion Date Practice Problems Work each of the following problems SHOW...

Algebra
1.2K views

Part 3 of 3 What age corresponds to the standard value of 3 2 010...

Accounting
1.2K views

Flint Corporation sels rock-climbing products and also operates an indoor...

Accounting
1.2K views

6. Investments in trading debt investments are generally reported at ...

Accounting
1.2K views

The following beginning and ending balances were drawn from the records of Grimes Company: If...

Accounting
1.2K views

2. 4

Accounting
1.2K views

Lily Manufacturing is in the process of setting a selling price on a new product...

Finance
1.2K views

Ence of 525 por sure. I was $11 marts and company declared by the end...