, select then *, and drag to the Favonites Bar folder. Or import from another br
ID: 1170830 • Letter: #
Question
, select then *, and drag to the Favonites Bar folder. Or import from another browser. Import favorites eek 4 Homework Assignment 5 Compute the NPV statistic for Project U if the appropriate cost of capital is 11 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project U Time: ints cash flow.-$1,550 $570 $2,ese -s63e $528-$218 eBook NPV Ask Reterences Should the project be accepted or rejected O rejected O accepted K Prev 5 of 7 Next>Explanation / Answer
NPV = Year 0 cash flow + Present value of future cash flows
NPV = -$1,550 + $570/1.11 + $2,030/1.112 - $630/1.113 + $520/1.114 - $210/1.115
NPV = -$1,550 + $1,918.37 = $368.37
Project should be accepted because NPV is positive.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.