Question

Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company's project, assuming the company's cost of capital is 13.86 percent. The initial outlay for the project is $305,503. The project will produce the following after-tax cash inflows of Year 1: 182,327 Year 2: 65,893 Year 3: 58,030 Year 4: 170,014 Round the answer to two decimal places.

Answer 1

x] 5 Book1 - Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign in > Calibri - 11 AA Wrap Text Currency * Cut ED Copy Format Painter A H Insert Delete Format Paste BIU E Merge & Center - $ % 4.0 .00 .00 0 Conditional Format as Cell Formatting Table Styles Styles AutoSum - A Z Fill- Sort & Find & Clear Filter - Select Editing Clipboard Font Г Alignment Number Cells A B12 : =NPV(B4,B7:B10)-B2 A B с D E F G H J L K M - N P 0 1 2 Initial investmet $305,503 3 4 Cost of capital 5 13.86% Cash flows 6 Years 7 1 8 2 182,327 65,893 58,030 170,014 3 4 9 10 11 12 NPV 13 NPV $45,928.100596083 NPV(B4,B7:B10)-B2 45,928.10 Round off to two decimals 14 15 16 17 18 19 20 21 22 23 Sheet1 Sheet2 + READY + 100% Spot 1++ W 7:51 AM 31-Jul-20