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