Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. project l costs $45,000, its expected cash inflows

Project L costs $45,000, its expected cash inflows are $11,000 per year for 12 years, and...

Free

70.2K

Verified Solution

Question

Finance

Project L costs $45,000, its expected cash inflows are $11,000per year for 12 years, and its WACC is 10%. What is the project'sNPV? Round your answer to the nearest cent. Do not round yourintermediate calculations.

Answer & Explanation Solved by verified expert
4.1 Ratings (626 Votes)

Computation of NPV
i ii iii=i*ii
year Cash flow PVIF @ 10% present value
0 -45000            1.0000       (45,000.00)
1 11000            0.9091         10,000.00
2 11000            0.8264           9,090.91
3 11000            0.7513           8,264.46
4 11000            0.6830           7,513.15
5 11000            0.6209           6,830.13
6 11000            0.5645           6,209.21
7 11000            0.5132           5,644.74
8 11000            0.4665           5,131.58
9 11000            0.4241           4,665.07
10 11000            0.3855           4,240.98
11 11000            0.3505           3,855.43
12 11000            0.3186           3,504.94
        29,950.61
Therefore NPV =        29,950.61

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Project L costs $45,000, its expected cash inflows are $11,000per year for 12 years, and its WACC is 10%. What is the project'sNPV? Round your answer to the nearest cent. Do not round yourintermediate calculations.

Other questions asked by students

Q

A utility-maximizing consumer who consumes quantity x and y of two goods has a quadratic utility...

Basic Math
Q

An aqueous ethylene glycol (HOCH2CH2OH, FW = 62.07 g/mol) solution with a mass of 207.9 mg...

Chemistry
Q

The odor of a dead fish is attributed to trimethylamine, (CH3)3N, one of a series of...

Chemistry
Q

Chemical synthesis of DNA Linking first nucleotide to column Removing oligonucleotide from column Purifying oligonucleotide...

Biology
Q

An open square tank of side 1m is com pletely filled with water If the...

Physics
Q

point This is the first part of a two part problem ewrite the given system...

Calculus
Q

Find the vertical and horizontal or slant asymptote for the following function y X 2...

Algebra
Q

Idaho Potatoes (IP) grows and processes potatoes in its one plant. It sells potatoes to...

Accounting
Q

Bustillo Incorporated is working on its cash budget for March. The budgeted beginning cash balance...

Accounting
Q

Specifics Amount ($) Inventory in process, April 1,7,000 gallons: Direct...

Accounting
Q

The following information is from Tejas WindowTint's financial records.

Accounting
Q

Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On...

Accounting