A five-year project has a projected net cash flow of $22,000 in year I. $29,000 in year 2, $21,000 in year 3, $11,000 in year 4, and $16,000 in year 5. It will cost $50,000 to implement the project. If the required rate of return is 38 percent, conduct a discounted cash flow calculation to determine the NPV. (Round your answer to nearest dollar amount. Negative amount should be indicated by a minus sign.) The NPV for the project is?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6PA: There are two projects under consideration by the Rainbow factory. Each of the projects will require...
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A five-year project has a projected net cash flow of $22,000 in year I. $29,000 in year 2, $21,000 in year 3,
$11,000 in year 4, and $16,000 in year 5. It will cost $50,000 to implement the project. If the required rate
of return is 38 percent, conduct a discounted cash flow calculation to determine the NPV. (Round your
answer to nearest dollar amount. Negative amount should be indicated by a minus sign.) The NPV for the
project is?
Transcribed Image Text:A five-year project has a projected net cash flow of $22,000 in year I. $29,000 in year 2, $21,000 in year 3, $11,000 in year 4, and $16,000 in year 5. It will cost $50,000 to implement the project. If the required rate of return is 38 percent, conduct a discounted cash flow calculation to determine the NPV. (Round your answer to nearest dollar amount. Negative amount should be indicated by a minus sign.) The NPV for the project is?
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