Suppose a project has the following cash flows. What is the NPV if the cost of the project is $105,000 and the required return is 9.75%? Year Cash Flow $28,000 2 32,000 3 36,000 4 39,000
Suppose a project has the following cash flows. What is the NPV if the cost of the project is $105,000 and the required return is 9.75%? Year Cash Flow $28,000 2 32,000 3 36,000 4 39,000
Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows
Section10.6: Profitability Index (pi)
Problem 2ST
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![Suppose a project has the following cash flows. What is the NPV if the cost of the
project is $105,000 and the required return is 9.75%?
Year
Cash Flow
$28.000
32,000
3
36,000
4
39,000
O$6,000
O $20,678
$1,193
$27,335
O $30,000
Page 16 of 30](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F69f101d4-1a46-44d1-ad51-7c5cb367782b%2Fa12e1b70-3695-4d34-8bab-59790d338431%2Fbc4ov8q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose a project has the following cash flows. What is the NPV if the cost of the
project is $105,000 and the required return is 9.75%?
Year
Cash Flow
$28.000
32,000
3
36,000
4
39,000
O$6,000
O $20,678
$1,193
$27,335
O $30,000
Page 16 of 30
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