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Bernadette Company is considering a project that has estimated annual net cash flows of $11,860 for 3 years and is estimated to cost $18,320.
Bernadette Company is considering a project that has estimated annual net cash flows of $11,860 for 3 years and is estimated to cost $18,320. Citrus's cost of capital is 6 percent. Below are the various discount rates for 6% Future Value of $1 Present Value of $1 Future Value Present Value of an ordinary of an ordinary annuity of $1 annuity of $1 Year 1 1.06000 0.93458 1.0000 0.94340 Year 2 1.12360 0.89000 2.0600 1.83339 Year 3 1.19102 0.83962 3.1836 2.67301 Determine the net present value of the project. :$ If the present value is negative, show as -, do not use (). For example, if NPV is negative 1,000, answer as -1000.
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