A company has a project available with the following cash fl

A company. has a project available with the following cash flows:


If the required return for the project is 9 percent, what is the project\'s NPV?

$17,059.63

$14,927.17

$26,380.00

$6,666.93

$13,683.24

Year Cash Flow
0 ?$33,350
1 12,900
2 14,740
3 20,430
4 11,660

Solution

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

=12900/1.09+14740/1.09^2+20430/1.09^3+11660/1.09^4

=$48277.17

NPV=Present value of inflows-Present value of outflows

=$48277.17-$33350

which is equal to

=$14927.17(Approx).

A company. has a project available with the following cash flows: If the required return for the project is 9 percent, what is the project\'s NPV? $17,059.63 $1

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