Consider the following project: Year (n) 0 1 2 3 4 Undiscounted cash flow -$600,000 $200,000 $200,000 $200,000 $200,000   Calculate the discounted cash flow for years 0-4 at a discount rate of 11%.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EB: Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two,...
Question

Consider the following project:

Year (n)

0

1

2

3

4

Undiscounted cash flow

-$600,000

$200,000

$200,000

$200,000

$200,000

 

Calculate the discounted cash flow for years 0-4 at a discount rate of 11%.

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