Question

Using a cost of capital of 11​%, calculate the net present value for the project shown...

Using a cost of capital of 11​%, calculate the net present value for the project shown in the following table and indicate whether it is​ acceptable,

Initial investment

​(CF 0CF0​)

negative $ 1149−$1149

Year

​(t​)

Cash inflows

​(CF Subscript tCFt​)

in thousands

1

​$8080

2

​$130130

3

​$189189

4

​$256256

5

​$312312

6

​$376376

7

​$280280

8

​$102102

9

​$4242

10

​$2020

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