A project has an initial cash outflow of $42,600 and produces cash inflows of $17,680, $19,920,...
A project has an initial cash outflow of $42,600 and produces cash inflows of $17,680, $19,920, and $15,670 for Years 1 through 3, respectively. Should this project be accepted based on the NPV?
Homework Answers
NPV = -$42,600 + $17,680/1.12 + $19,920/1.122 + $15,670/1.123
NPV = $219.41
Yes, it should be accepted.
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