This Question 1 pt 8 of 31 0 complete This Test 31 pts possi

This Question: 1 pt 8 of 31 (0 complete) This Test: 31 pts possil Question Help Suppose you\'re presented with a proposal for a project that costs $4,100 and will bring in $20.200 the first year. The next year, youll have to pay out S1 6,000, with a cost of capital of 12%, calculate the net present value (NPV) for this project. The NPV of the project is s (Round to the nearest cent.)

Solution

1.

	Cash flow	PVF @ 12%	PV
Year 0	-4100	1.00	-4100
Year 1	20200	.8928	18034.56
Year 2	-16000	.7972	-12755.20
		NPV	1179 (Rounded)