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Question 2: A project's cash flow projections are as follows. Determine the Net Present Value (NPV) of the project at a discount rate of 10%.

Question 2:

A project's cash flow projections are as follows. Determine the Net Present Value (NPV) of the project at a discount rate of 10%.

Year

Cash Flow ($)

0

-25,000

1

8,000

2

9,000

3

10,000

4

12,000

5

14,000

Requirements:

  1. Calculate the NPV of the project.
  2. Determine if the project should be accepted based on NPV.

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