A project has a required return of 12.6 %, an initial cash outflow of $43,000, andcash inflows of $16, 500 in Year 1, $11,700 in Year 2, and $10,400 in Year 5 . What isthe net present value?

NPV is the difference between the present value of cash inflows and the present value of cash…

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cash inflows of $16,500 in Year 1, $11,700 in Year 2, and $10,400 in Year 5 . What is the net present value?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...

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Question

A project has a required return of 12.6 %, an initial cash outflow of $43,000, and
cash inflows of $16, 500 in Year 1, $11,700 in Year 2, and $10,400 in Year 5 . What is
the net present value?

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