Homework Answers
The following is the data given in the question:
- Initial Cost = $7,000
- Cash inflow year 1 = $2,000
- Cash inflow year 2 = $3,000
- Cash inflow year 3 = $5,000
- WACC = 10.68%
To Calculate : NPV
The following is the formula for NPV:
NPV = $1,807.01 + $2,448.97 + $3,687.76 – $7,000 = $943.74
Hence, the answer is 943.74
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