A project which costs S42000 pron Points 5 es S 15000 in the

A project which costs S42,000 pron (Points: 5) es S 15,000 in the first period, $5000 Ln he third period, s 16,000 in the fourth period and $14,000 in the fifth period IfWACC is 55% what is the NPV of this project? O 103.43 O 98.03 O negative 10,774.54 O negative 11,367.14 O negative 103.43

Solution

NPV = 103.43

Discount rate	5.5000%
Cash flows	Year	Discounted CF= cash flows/(1+rate)^year	Cumulative cash flow
(42,000.00)	0	(42,000.00)	(42,000.00)
15,000.000	1	14,218.01	(27,781.99)
-	2	-	(27,781.99)
5,000.000	3	4,258.07	(23,523.92)
16,000.000	4	12,915.47	(10,608.45)
14,000.000	5	10,711.88	103.43