Net present value : NPV is the method to evaluate the feasibility of the project. This method calculates the present value of cash all inflows and outflows, and then calculates the net present value of the investment. An investment project should be accepted when NPV is positive. The formula to calculate the NPV is as follows: NPV = Present value of cash inflows – Present value of cash out flows To calculate: The Net present value.

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Chapter 11, Problem 1.4GAP

To determine

Concept introduction:

Net present value: NPV is the method to evaluate the feasibility of the project. This method calculates the present value of cash all inflows and outflows, and then calculates the net present value of the investment. An investment project should be accepted when NPV is positive. The formula to calculate the NPV is as follows:

NPV = Present value of cash inflows – Present value of cash out flows

To calculate:

The Net present value.

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