Question

A project with a 3-year life will cost $50,000 now, and then generate revenues of $21,000...

A project with a 3-year life will cost $50,000 now, and then generate revenues of $21,000 and operating costs of $3,000 in year 1, $24,000 in revenue and operating costs of $3,000 in year 2, and $25,000 in revenue and operating costs of $3,000 in year 3. If the discount rate is 10%, what is the Net Present Value of the project? Round to the nearest whole number.

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Answer #1

Ans $ 247.93

A project with a 3-year life will cost $50,000 now, and then generate revenues of $21,000 and operating costs of $3,000 in year 1, $24,000 in revenue and operating costs of $3,000 in year 2, and $25,000 in revenue and operating costs of $3,000 in year 3. If the discount rate is 10%, the Net Present Value of the project is $ 247.93

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