Question

1.

Project A
Year	Cash Flow
0	-$123
1	$59
2	$79
3	$143
WACC =	6.57%

Given the cash-flows in the table, what is the NPV of project A?  
State your answer to the nearest penny.
Give just the number with no dollar sign (e.g., 3.26)

If the NPV is negative include the - sign (e.g. -4.28).

2.

Project A
Year	Cash Flow
0	-$233
1	$56
2	$78
3	$104
WACC =	6.97%

Given the cash-flows in the table, what is the NPV of project A?  
State your answer to the nearest penny.
Give just the number with no dollar sign (e.g., 3.26)

If the NPV is negative include the - sign (e.g. -4.28)

Answer 1

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

=59/1.0657+79/1.0657^2+143/1.0657^3

=243.07

NPV=Present value of inflows-Present value of outflows  

=243.07-123

=120.07(Approx)

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

=56/1.0697+78/1.0697^2+104/1.0697^3

=205.48

NPV=Present value of inflows-Present value of outflows  

=205.48-233

=-27.52(Approx)(Negative)