A five-year project has a projected net cash flow of $15,000, $30,000, $20,000, $15,000 and $10,000 in the next five years. It will cost $30,000 to implement the project. If the required rate of return is 20%, conduct a discounted cash flow calculation to determine the Net Present Value (NPV).
A five-year project has a projected net cash flow of $15,000, $30,000, $20,000, $15,000 and $10,000 in the next five years. It will cost $30,000 to implement the project. If the required rate of return is 20%, conduct a discounted cash flow calculation to determine the Net Present Value (NPV).
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A five-year project has a projected net cash flow of
$15,000, $30,000, $20,000, $15,000 and $10,000 in the
next five years. It will cost $30,000 to implement the
project. If the required rate of return is 20%, conduct a
discounted cash flow calculation to determine the Net
Present Value (NPV).
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