What is the Net Present Value (NPV) of the following set of cash flows if the...
What is the Net Present Value (NPV) of the following set of cash flows if the cost of capital is 0.02?
Co = -150
C01 = 410
C02 = 450
C03 = 70
Homework Answers
| Year | Cash flow | Discount factor | Present value |
| a | b | c=1.02^-a | d=b*c |
| 0 | -150 | 1.0000 | -150.00 |
| 1 | 410 | 0.9804 | 401.96 |
| 2 | 450 | 0.9612 | 432.53 |
| 3 | 70 | 0.9423 | 65.96 |
| Net Present value | 750.45 | ||
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