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Rossdale Flowers has a new greenhouse project with an initial cost of $319,500 that is expected...

Rossdale Flowers has a new greenhouse project with an initial cost of $319,500 that is expected to generate cash flows of $47,100 for 9 years and a cash flow of $62,500 in Year 10. If the required return is 8.9 percent, what is the project's NPV?

$105,241.20

-$15,893.27

−$9,328.17

$10,750.84

$83,375.17

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Answer #1
Year Cashflows PVF at 8.90% Present Value
0 -319500 1 -319500
1 47100 0.918274 43250.69
2 47100 0.843226 39715.97
3 47100 0.774313 36470.13
4 47100 0.711031 33489.56
5 47100 0.652921 30752.58
6 47100 0.59956 28239.28
7 47100 0.55056 25931.39
8 47100 0.505565 23812.11
9 47100 0.464247 21866.03
10 62500 0.426306 26644.11
Net Present value -9328.17
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