Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Net present value Using a cost of capital of 12, calculate the net present value for the project shown in the following table and indicate

image text in transcribed
image text in transcribed
Net present value Using a cost of capital of \12, calculate the net present value for the project shown in the following table and indicate whether it is acceptable, The net present value (NPV) of the project is \\( \\$ \\quad \\). (Round to the nearest cent.) \\begin{tabular}{cc} \\hline Initial investment \\( \\left(\\mathrm{CF}_{0}\ ight) \\) & \\multicolumn{1}{c}{\\( -1,141,000 \\)} \\\\ \\hline Year \\( (\\boldsymbol{t}) \\) & Cash inflows \\( \\left(\\boldsymbol{C F}_{\\boldsymbol{t}}\ ight) \\) \\\\ \\hline 1 & \\( \\$ 84,000 \\) \\\\ 2 & \\( \\$ 135,000 \\) \\\\ 3 & \\( \\$ 190,000 \\) \\\\ 4 & \\( \\$ 253,000 \\) \\\\ 5 & \\( \\$ 311,000 \\) \\\\ 6 & \\( \\$ 376,000 \\) \\\\ 7 & \\( \\$ 272,000 \\) \\\\ 8 & \\( \\$ 104,000 \\) \\\\ 9 & \\( \\$ 45,000 \\) \\\\ 10 & \\( \\$ 26,000 \\) \\\\ \\hline \\end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Money Talks Explaining How Money Really Works

Authors: Nina Bandelj ,Frederick F. Wherry ,Viviana A. Zelizer

1st Edition

0691202893, 978-0691202891

More Books

Students also viewed these Finance questions