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Calculate the PV of cash flows below and the NPV of the project: Now Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11
Calculate the PV of cash flows below and the NPV of the project:
Now | Y1 | Y2 | Y3 | Y4 | Y5 | Y6 | Y7 | Y8 | Y9 | Y10 | Y11 |
-250 | -75 | -75 | -75 | -75 | -75 | -75 | -75 | -75 | -75 | -75 | |
300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 300 | 1MM |
Given:
-for the payments of -250,-75,-75 the discount rate is 10% (with ann. Compounding)
-the discount factor for cash inflows the Discount rate is 20% (with ann. Compounding)
-the estimated resale price is $1MM
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