Question
Net present valueUsing a cost of capital of 15%, calculate the net present value for the project shown in the following table and indicate whether
Net present valueUsing a cost of capital of 15%,
calculate the net present value for the project shown in the following table and indicate whether it is acceptable,
| Initial investment (CF 0) | $-1154 |
| |
| Year (t) | Cash inflows (CFt) in thousands | ||
| 1 | $84 | ||
| 2 | $133 | ||
| 3 | $193 | ||
| 4 | $252 | ||
| 5 | $312 | ||
| 6 | $382 | ||
| 7 | $277 | ||
| 8 | $95 | ||
| 9 | $41 | ||
| 10 | $21 | ||
.
The net present value (NPV) of the project is
$
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The Smart Investors Survival Guide
Authors: Charles Carlson
1st Edition
0385503873, 978-0385503877
