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j Calculating the NPV of a capital project with equal annual cash flows $ 47,000 What is the NPV of a project that costs $
j Calculating the NPV of a capital project with equal annual cash flows $ 47,000 What is the NPV of a project that costs $ 110,000 that generates expected cash flows of annually for 3 years if the opportunity cost of capital is 13.521% ? You must provide the answer both ways to get credit Brute Force Method 110,000 Year PV 3 Initial investment= $ Investment horizons Expected annual cash flow= $ Opportunity cost of capital= 47,000 13.5% Cash Flow 0 $ (110,000) $ (110,000) 1 $ 47,000 2 $ 47,000 3 $ 47,000 NPV=sum= NPV= -$0.23 Should the company do this project? Typs your answer here
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