What is the net present value of a project with the following cash flows if the discount rate is 11 percent?
Year 0: $16500
Year 1: $1400
Year 2: $1500
Year 3: $1750
Year 4: $0
A | B | C = A X B | ||
Year | Cash flow | DF at 11% | Present value | |
0 | 16500 | 1 | $ 16,500.00 | |
1 | 1400 | 0.900901 | $ 1,261.26 | |
2 | 1500 | 0.811622 | $ 1,217.43 | |
3 | 1750 | 0.731191 | $ 1,279.58 | |
4 | 0 | 0.658731 | $ - | |
NPV | $ 20,258.28 | Ans |
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