Question
Option #1: NPV for 4-Year Project For this exercise, you need to calculate the NPV for a project described below. Make sure you study the
Option #1: NPV for 4-Year Project
For this exercise, you need to calculate the NPV for a project described below. Make sure you study the "Numeric Models: Profit/Profitability" section in Chapter 2 of the textbook before trying to solve the problem.
A 4year financial project has net cash flows of $20,000; $25,000; $30,000; and $50,000 in the next 4 years. It will cost $75,000 to implement the project. If the required rate of return is 0.2, conduct a discounted cash flow calculation to determine the NPV. Include your calculations in an appendix after the references page. Include information on what projected net cash flow, discounted cash flow and NPV are, why they are useful in project selection
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