What is the NPV of a project that requires a $100,000 investment at inception and generates...
Homework Answers
The NPV of a project is the PV of the outflows minus the PV of the inflows. Since the cash inflows are an annuity, the equation for the NPV of this project at an 9 percent required return is:
NPV = -$100,000 + $50,000(PVIFA10%, 3)
NPV = $24,343
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