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A project requires an initial investment today of $100,928.00. The project will last three years. However, the company believes that the risk involved with the
A project requires an initial investment today of $100,928.00. The project will last three years. However, the company believes that the risk involved with the project will increase over its life, so they would like a greater return for later cash flows. The table below shows the projected cash flows and the discount rates required for the project.
Year | 0 | 1 | 2 | 3 |
---|---|---|---|---|
Cash flow | -$100,928.00 | $50,064.00 | $48,812.00 | $45,076.00 |
Discount rate | 9.00% | 13.00% | 19.00% |
What is the NPV of this project?
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