Problem 10-3

Calculate the NPV for the following projects. Round PVF values in intermediate calculation to four decimal places. Round answers to two decimal places. Use a minus sign to indicate a negative NPV.

An outflow of $7,000 followed by inflows of $3,000, $2,500, and $3,500 at one-year intervals at a cost of capital of 8%. $

An initial outlay of $35,400 followed by inflows of $6,500 for three years and then a single inflow in the fourth year of $18,000 at a cost of capital of 10%. (Recognize the first three inflows as an annuity in your calculations.) $

An initial outlay of $27,500 followed by an inflow of $3,000 followed by five years of inflows of $5,500 at a cost of capital of 10%. [Recognize the last five inflows as an annuity, but notice that it requires a treatment different from the annuity in part (b).] $