Project K costs 35000 its expected cash inflows are 15000 pe

Project K costs $35,000, its expected cash inflows are $15,000 per year for 11 years, and its WACC is 13%. What is the project\'s NPV? Round your answer to the nearest cent.

Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

=$15000[1-(1.13)^-11]/0.13

=$15000*5.686941129

=$85304.12

NPV=Present value of inflows-Present value of outflows

=$85304.12-$35000

=$50304.12(Approx).

$Project K costs $35,000, its expected cash inflows are $15,000 per year for 11 years, and its WACC is 13%. What is the project\'s NPV? Round your answer to the$

Project K costs 35000 its expected cash inflows are 15000 pe

Solution

Get Help Now

Submit a Take Down Notice