A project has the following cash flows What is the projects

A project has the following cash flows: What is the project\'s NPV if the interest rate is $6%? 0 1 2 3 ($500) $100 $200 $310?

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=100/1.06+200/1.06^2+310/1.06^3

=$532.62(Approx)

NPV=Present value of inflows-Present value of outflows

=$532.62-$500

=$32.62(Approx)

$A project has the following cash flows: What is the project\'s NPV if the interest rate is $6%? 0 1 2 3 ($500) $100 $200 $310?SolutionPresent value of inflows=c$

A project has the following cash flows What is the projects

Solution

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