What is the net present value of a project that has an initial cash outflow of...

Free

80.2K

Verified Solution

Question

Finance

What is the net present value of a project that has an initialcash outflow of $-13,000, at time 0, and the following cash flowsfor years 1-4? The required return is 10.0%. DO NOT USE DOLLARSIGNS OR COMMAS IN YOUR ANSWER. ENTER YOUR ANSWER TO THE NEARESTDOLLAR (e.g. 1250). Year Cash Flows 1 $3,950 2 $3,750 3 $5,900 4$6,400

Answer & Explanation Solved by verified expert

3.9 Ratings (470 Votes)

Calculation of net present value of project :

Time	Cashflow	PVF @10%	PV
-	-13000	1.00	-13,000.00
1.00	3950	0.9091	3,590.91
2.00	3750	0.8264	3,099.17
3.00	5900	0.7513	4,432.76
4.00	6400	0.6830	4,371.29
			2,494.13
Net present value of Project is 2494

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

What is the net present value of a project that has an initialcash outflow of $-13,000, at time 0, and the following cash flowsfor years 1-4? The required return is 10.0%. DO NOT USE DOLLARSIGNS OR COMMAS IN YOUR ANSWER. ENTER YOUR ANSWER TO THE NEARESTDOLLAR (e.g. 1250). Year Cash Flows 1 $3,950 2 $3,750 3 $5,900 4$6,400

What is the net present value of a project that has an initial cash outflow of...

Free

80.2K

Verified Solution

Question

Finance

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Transcribed Image Text

Other questions asked by students