Question
The following details are provided by Doppler Company: Initial investment $2,000,000 Discount rate 12% Yearly cash flows 1 $734,000 2 $604,000 3 $604,000 4 $604,000
The following details are provided by Doppler Company:
| Initial investment | $2,000,000 |
| Discount rate | 12% |
| Yearly cash flows | |
| 1 | $734,000 |
| 2 | $604,000 |
| 3 | $604,000 |
| 4 | $604,000 |
| 5 | $734,000 |
Present Value of $1:
| 10% | 11% | 12% | 13% | |
| 1 | 0.909 | 0.901 | 0.893 | 0.885 |
| 2 | 0.826 | 0.812 | 0.797 | 0.783 |
| 3 | 0.751 | 0.731 | 0.712 | 0.693 |
| 4 | 0.683 | 0.659 | 0.636 | 0.613 |
| 5 | 0.621 | 0.593 | 0.567 | 0.543 |
Calculate the NPV of the project.
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ISE Business Accounting Volume 1
Authors: Frank Wood, Alan Sangster
8th Edition
0273638394, 9780273638391
