Question
A project will require an initial outlay of $1000 and will result in the following cash inflows in the years shown. If the cost of
A project will require an initial outlay of $1000 and will result in the following cash inflows in the years shown. If the cost of capital is 4%, what is the NPV of the project?
| Year | Cash Flow |
| 1 | $640 |
| 2 | $600 |
| 3 | $530 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the net present value NPV of the project we need to discount ...
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Step: 2
Step: 3
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Calculus For Business, Economics And The Social And Life Sciences
Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price
11th Brief Edition
978-0073532387, 007353238X
