Calculate the net present value (NPV) for a 20-year project with an initial investment of $10 comma 000 and a cash inflow of $2 comma 000 per year. Assume that the firm has an opportunity cost of 14%. Comment on the acceptability of the project
The project's net present value is ____
Solution :
The project's net present value is $ 3,246.26
=$ 3,246 ( when rounded off to the nearest dollar )
Since the NPV of the project is positive the project should be accepted.
Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.
Calculate the net present value (NPV) for a 20-year project with an initial investment of $10...
NPV Calculate the net present value (NPV) for a 20-year project with an initial investment of $10,000 and a cash inflow of $2,000 per year. Assume that the firm has an opportunity cost of 16%. Comment on the acceptability of the project. The project's net present value is $ (Round to the nearest cent.)
NPV Calculate the net present value (NPV) for a 30-year project with an initial investment of $25,000 and a cash inflow of $4,000 per year. Assume that the firm has an opportunity cost of 18% Comment on the acceptability of the project. The project's net present value is S□ (Round to the nearest cent ) Enter your answer in the answer box and then click Check Answer part remainin Clear All javascriptdoExercise(3);
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1. Calculate the net present value (NPV) for a 10-year project with an initial investment of $25,000 and a cash inflow of $7,000 per year. Assume that the firm has an opportunity cost of 17%. The project's net present value is $_____.
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