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Project M has a cost of $65,125, expected net cash inflows of $13,000 per year for...

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Finance

Project M has a cost of $65,125, expected net cash inflows of$13,000 per year for ten years, and a cost of capital of 11%. Whatis the project’s NPV? What is the project’s discounted paybackperiod?

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3.5 Ratings (655 Votes)
Projects Net Present Value NPV Year Annual Cash Flow Present Value factor at 11 Present Value of Cash Flow 1 13000 0900901 1171171 2 13000 0811622 1055109 3 13000 0731191 950549 4 13000 0658731 856350 5 13000 0593451 771487 6 13000 0534641    See Answer
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Project M has a cost of $65,125, expected net cash inflows of$13,000 per year for ten years, and a cost of capital of 11%. Whatis the project’s NPV? What is the project’s discounted paybackperiod?

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