Question
You have been asked to determine the NPV of a project. The has a cost of $800. This cost is incurred at year O.
You have been asked to determine the NPV of a project. The has a cost of $800. This cost is incurred at year O. The expected cash flow in year 1 is $130. The expected cash flow in year 2 is $220. The expected cash flow in year 3 is $360 and the expected cash flow in year 4 is $500. The project's required rate of return is 7.50% compounded annually. What is the NPV (net present value) of the project?
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
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