Question

A project will produce cash inflows of $2,800 a year for 4 years with a final...

A project will produce cash inflows of $2,800 a year for 4 years with a final cash inflow of $5,700 in year 5. The project's initial cost is $9,500. What is the net present value of this project if the required rate of return is 12 percent?

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Answer #1

NPV is calculated as follows:

NPV is 2238.91

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