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I really dont understand how to find the 4.6229 PV Factor. Can you please explain the step by step process? (the info in the last
I really dont understand how to find the 4.6229 PV Factor. Can you please explain the step by step process? (the info in the last chart is the answer and isn't given it the question)
M11-5 Calculating Net Present Value [LO 11-3] Citrus Company is considering a project that has estimated annual net cash flows of $21,300 for six years and is estimated to cost $100,000. Citrus's cost of capital is 8 percent. Determine the net present value of the project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Negative amount should be indicated by a minus sign. Round your final answer to 2 decimal places.) $ Net Present Value +1 -0.01% (1,532.23) Based on NPV, determine whether project is acceptable to Citrus. Unacceptable Explanation: Annual Cash Flow $ (100,000) 21,300 PV Factor (8%) Year 0 1-6 NPV 4.6229 Present Value $(100,000.00) 98,467.77 $ (1,532.23) The negative NPV shows that the present value of the future cash inflows for the project is less than the original investment it requires. A negative NPV suggests the project is unacceptableStep by Step Solution
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