Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. what is the net present value of a project that ha

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

Free

80.2K

Verified Solution

Question

Finance

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

Answer & Explanation Solved by verified expert
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

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

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

Other questions asked by students

Q

3 quotes of marine biologists about their careers with names of the person who said it.

Biology
Q

A collector-modulated power has a supply voltage of 48V and an average collector current of 600...

Electrical Engineering
Q

Consider the following premerger information about Firm X and Firm Y: Firm X Firm Y Total...

Accounting
Q

Question 8 1 point di Listen In a population of organisms 40 is homozygous dominant...

Biology
Q

Price of currency floats up and down daily In effect since the 1970s O Fixed...

Basic Math
Q

The table below shows the calories of a hamburger at a fast food chain over...

Statistics
Q

probability that a randomly selected 5 year old male stink bug will live to be...

Statistics
Q

Type integers or decimals Do not round d What percentage of the Saturdays had 10...

Statistics
Q

1 Annie Meyer borrowed $75,000 from a local organization that finances the start-up of small...

Accounting
Q

Why are the risks involved in international credit management more complex than those associated with...

Accounting
Q

Answer Must be given as formulas 1. Compute and interpret financial ratios that managers...

Accounting
Q

If we aren't using a bank or friends where do you go to find an...

Accounting