An investment project has expected cash flows as shown below. The required rate of return for the project is 11.8%. What is the project's net present value (NPV)? Assume that the cash flows after year 0 occur at the end of each year. Year 0 cash flow= -91,000 Year 1 cash flow=21,000 Year 2 cash flow= 40,000 Year 3 cash flow= 43,000 Year 4 cash flow= 55,000 Year 5 cash flow= 19,000

An investment project has expected cash flows as shown below. The required rate of return for the project is 11.8%. What is the project's net present value (NPV)? Assume that the cash flows after year 0 occur at the end of each year. Year 0 cash flow= -91,000 Year 1 cash flow=21,000 Year 2 cash flow= 40,000 Year 3 cash flow= 43,000 Year 4 cash flow= 55,000 Year 5 cash flow= 19,000

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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