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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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