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QUESTION 7 Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow
QUESTION 7
Project | Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
Cash Flow | Cash Flow | Cash Flow | Cash Flow | Cash Flow | Cash Flow | |
A | -14000 | 6000 | 6000 | 6000 | 6000 | 6000 |
B | -15000 | 7000 | 7000 | 7000 | 7000 | 7000 |
C | -18000 | 12000 | 2000 | 2000 | 2000 | 2000 |
The cash flows for three projects are shown above. The cost of capital is 9.5%. The net present value (NPV) of project A is ________.
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