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What is the net present value of a project that has an initial cash outflow of...

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What is the net present value of a project that has an initialcash outflow of $-13,000, at time 0, and the following cash flowsfor years 1-4? The required return is 10.0%. DO NOT USE DOLLARSIGNS OR COMMAS IN YOUR ANSWER. ENTER YOUR ANSWER TO THE NEARESTDOLLAR (e.g. 1250). Year Cash Flows 1 $3,950 2 $3,750 3 $5,900 4$6,400

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3.9 Ratings (470 Votes)

Calculation of net present value of project :
Time Cashflow PVF @10% PV
               -   -13000                                      1.00                                 -13,000.00
          1.00 3950                                 0.9091                                     3,590.91
          2.00 3750                                 0.8264                                     3,099.17
          3.00 5900                                 0.7513                                     4,432.76
          4.00 6400                                 0.6830                                     4,371.29
                                    2,494.13
Net present value of Project is 2494

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Transcribed Image Text

What is the net present value of a project that has an initialcash outflow of $-13,000, at time 0, and the following cash flowsfor years 1-4? The required return is 10.0%. DO NOT USE DOLLARSIGNS OR COMMAS IN YOUR ANSWER. ENTER YOUR ANSWER TO THE NEARESTDOLLAR (e.g. 1250). Year Cash Flows 1 $3,950 2 $3,750 3 $5,900 4$6,400

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