Question

What is the net present value of a project with the following cash flows if the...

What is the net present value of a project with the following cash flows if the discount rate is 8 percent?

Year CFs
0 -1280
1 883
2 507
3 368

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

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Homework Answers

Answer #1
NPV is $264.39
Statement showing Cash flows
Particulars Time PVf 8% Amount PV
Cash Outflows                               -                             1.00                (1,280.00)                  (1,280.00)
PV of Cash outflows = PVCO                  (1,280.00)
Cash inflows                           1.00                      0.9259                      883.00                        817.59
Cash inflows                           2.00                      0.8573                      507.00                        434.67
Cash inflows                           3.00                      0.7938                      368.00                        292.13
PV of Cash Inflows =PVCI                    1,544.39
NPV= PVCI - PVCO                        264.39
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