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?
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?
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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