Find the net present value (NPV) for the following series of future cash flows, assuming the...

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Find the net present value (NPV) for the following series offuture cash flows, assuming the company’s cost of capital is 6.64percent. The initial outlay is $339,858. Year 1: 163,676 Year 2:147,656 Year 3: 123,800 Year 4: 178,407 Year 5: 149,077 Round theanswer to two decimal places.

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4.0 Ratings (456 Votes)

Calculation of NPV:
Particulars Time PVF 6.64% Amount PV
Cash Outflow                        -                                                          1.00                     (3,39,858.00)                     (3,39,858.00)
Cash Inflows                      1.00                                                    0.9377                        1,63,676.00                        1,53,484.62
Cash Inflows                      2.00                                                    0.8793                        1,47,656.00                        1,29,840.69
Cash Inflows                      3.00                                                    0.8246                        1,23,800.00                        1,02,084.60
Cash Inflows                      4.00                                                    0.7732                        1,78,407.00                        1,37,953.06
Cash Inflows                      5.00                                                    0.7251                        1,49,077.00                        1,08,096.08
NPV                        2,91,601.06
NPV is $291601.06

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