A project has expected cash flows as shown below: Year Net Cash Flow 0 -25,000 1-4...

Question

Question

If the firm's discount rate is 12 percent, what is the NPV of this project?

Answer 1

Answer #1

D13 fx -SUM(D3:012) BC 2 year Cash flows pv@12% Present value (25,000.00) 1.0000 $ (25,000.00) 5,000.00 0.8929 $ 4,464.29 2 $

D13 fax =SUM(D3:012) pv@12% 1 2 year 3 0 4 1 5 2 63 74 85 96 10 7 11 8 12 9 13 14 Cash flows -25000 5000 5000 5000 5000 4000

Answer 2

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