What is the net present value of a project that contributes $16,000 at the end of...
What is the net present value of a project that contributes $16,000 at the end of the first year and $27,000 at the end of the second year. The initial cost is $39,000 and the interest rate is 6%.
Homework Answers
Year 1 Cash Flow = $ 16000, Year 2 Cash Flow = $ 27000 and Initial Cost = $ 39000
Interest Rate = 6 %
Net Present Value of the Project = NPV = 27000 / (1.06)^(2) + 16000 / (1.06) - 39000 = $ 124.24
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