What is the NPV for the following project if its cost of capital is 15 percent...

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Finance

What is the NPV for the following project if its cost of capitalis 15 percent and its initial after tax cost is $5,000,000 and itis expected to provide after-tax operating cash inflows of$2,000,000 in year 1, $2,000,000 in year 2, $2,000,000 in year 3and $1,410,000 in year 4?
a. 1,700,000
b. 372622
c.-137,053
d. none of the above

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4.5 Ratings (868 Votes)

D NONE OF THE ABOVE Present Value Of Cash Inflows PVIFA 5709957 Net Present Value NPV 709957 What is Net Present Value NPV NPV is a simple yet an important tool that shows the difference between the present value of future cash flows and the amount of current investment The present value of your expected cash flow is derived by discounting them at a certain rate of return NPV is an easytouse See Answer

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What is the NPV for the following project if its cost of capitalis 15 percent and its initial after tax cost is $5,000,000 and itis expected to provide after-tax operating cash inflows of$2,000,000 in year 1, $2,000,000 in year 2, $2,000,000 in year 3and $1,410,000 in year 4?a. 1,700,000b. 372622c.-137,053d. none of the above