39. A project has expected cash flows as shown below: Year 0 1-4 Net Cash Flow...

Question

Question

39. A project has expected cash flows as shown below: Year 0 1-4 Net Cash Flow -25,000 5,000 4,000 8,000 7,000 If the firms

Answer 1

Answer #1

NPV = -$25,000 + $5,000/1.12 + $5,000/1.12² + $5,000/1.12³ + $5,000/1.12⁴ + $4,000/1.12⁵ + $4,000/1.12⁶ + $4,000/1.12⁷ + $8,000/1.12⁸ + $7,000/1.12⁹

NPV = $2,047.71

Answer 2

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