Question

What is the net present value of a project with the following cash flows if the discount rate is 12 percent? Year Cash flow -


What is the net present value of a project with the following cash flows if the discount rate is 12 percent? 


Year Cash flow 

0  -$27,500 

1  14,800 

2  19,400 

3  5,200

1 0
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Answer #1
Year Cash flow Discount rate Present value
a b c=1.12^-a d=b*c
0 $       -27,500      1.0000 $ -27,500.00
1             14,800      0.8929       13,214.29
2             19,400      0.7972       15,465.56
3               5,200      0.7118         3,701.26
Net Present Value $     4,881.10
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