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A project has the following cash flows: Year Cash Flows 0 -15000 1 6630 2 7971...

A project has the following cash flows:

Year Cash Flows
0 -15000
1 6630
2 7971
3 6730

What is the NPV at a discount rate of zero percent? (Round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.)

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Answer #1

Answer:

NPV-CF/(1+r)

CF=Cash flow

r= discount rate =0%

t=time in which cash flow occur

NPV=-15000/(1+0%)^0+6630/(1+0%)^1+7971/(1+0%)^2+6730/(1+0%)^3

NPV=$6331

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