Question

MindTap.Cengage les x Cengage Learning Financial Markets and considering the tour x + xhtml?deploymentid=593314221960140805465244290098 ISBN=9781337911009&id=650356567&snapshotid=14797598 NDTAP Q Search Questions (CNOW) Chapter 11 - EOC Questions (CNOW) Assignment Score: 63.63 Save Submit Assignment for Grading Problem 11.01 (NPV) Question 2 of 11 Check My Work (No more tries available) eBook 1 Problem Walk Through Project L requires an initial outlay at t - 0 of 345,000, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 14%. What is the project's NPV? Do not round Intermediate calculations. Round your answer to the nearest cent. $ Check My Work (No more tries available) PC Help-1-800-550-7801A 400

Answer 1

D12 F =SUM(D2:011) 1 year B Cash flows o $ (45,000.00 11 $ 13,000.00 2 $ 13,000.00 3 $ 13,000.00 4 $ 13,000.00 5 $ 13,000.00 6 $ 13,000.00 7$ 13,000.00 13,000.00 9 $ 13,000.00 pv@14% Present value 1.0000 $ 0.8772 $ 0.7695 $ 0.6750 $ 0.5921 $ 0.5194 $ 0.4556 $ 0.3996 $ 0.3506 $ 0.3075 $ NPV $ (45,000.00) 11,403.51 10,003.08 8,774.63 7,697.04 6,751.79 5,922.63 5,195.29 4,557.27 3,997.60 19,302.83 13

D12 F =SUM(D2:011) В pv@14% 1 year 20 3 1 42 5 3 64 75 86 97 10 8 11 9 12 Cash flows -45000 13000 13000 13000 13000 13000 13000 13000 13000 13000 =C2/1.14 =C3/1.14 =C4/1.14 =C5/1.14 =C6/1.14 =C7/1.14 =C8/1.14 =C9/1.14 =C10/1.14 NPV Present value =B2*C2 =B3*C3 =B4*C4 =B5*C5 =B6*C6 =B7*C7 =B8*C8 =B9*C9 =B10*C10 =B11*c11 -SUM(D2:011)