Question

Jazz World Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV?
 

WACC:	12.00%
Year	0	1	2	3	4
Cash flows	-$1,200	$400	$425	$450	$475

Answer 1

K47 fc =SUM(K42:46) G J K 40 H Calculation of NPV Year 41 42 0 43 1 Cashflows (1,200.00) 400.00 425.00 450.00 475.00 44 $ $ $ $ $ 2 Pv@ 12% 1 0.89286 0.79719 0.71178 0.63552 NPV $ $ $ $ $ $ PVCF (1,200.00) 357.14 338.81 320.30 301.87 118.12 Answer:d 45 3 46 4 47 48

K47 G K 40 41 0 42 43 fc =SUM(K42:K46) H J Calculation of NPV Year Cashflows Pv@ 12% -1200 =1 1 400 =J42/1.12 425 =J43/1.12 3 450 =J44/1.12 4 475 =J45/1.12 NPV 44 N PVCF =142* J42 =143*143 =144*144 =145* 145 l=146*146 =SUM(K42:546) 45 3 4 46 47 Answer:d