Question

Project L requires an initial outlay at t = 0 of $35,000, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 10%. What is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $

Answer 1

As per details given in the answer
NPV = PV of inflow - Outflow
PV of inflow is calculated by-
=PV(rate,nper,pmt,[fv],[type])
=PV(10%,1,0,-13000,) = 11818.18 and so on..

Years	Cashflow	PV of cashflow
0	-35000	-35000.00
1	13000	11818.18
2	13000	10743.80
3	13000	9767.09
4	13000	8879.17
5	13000	8071.98
6	13000	7338.16
7	13000	6671.06
8	13000	6064.60
9	13000	5513.27
	NPV	39867.31

OR
NPV = 39900 round off nearest to cent.

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