Net present value using a cost of capital of 13%, calculate the net present valu

Question

Net present value using a cost of capital of 13%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable, The net present value (NPV) of the project is (Round to the nearest cent.) i Data Table (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) $760,000 Initial investment (CFo) Year (t) Cash inflows (CF) $200,000 $190,000 $180,000 $170,000 $160,000 $150,000 $140,000 $130,000 $120,000 110 Enter your answer in the answer box and then click Check Answer part remaining Clear All

Explanation / Answer

Ref Particulars Year 0 Year 1 2 3 4 5 6 7 8 9 10 a Cash flow -7,60,000.00 2,00,000.00 1,90,000.00 1,80,000.00 1,70,000.00 1,60,000.00 1,50,000.00 1,40,000.00 1,30,000.00 1,20,000.00 1,10,000.00 b Discount factor @13% 1 0.88495575 0.78314668 0.69305016 0.61331873 0.54275994 0.48031853 0.42506064 0.37615986 0.33288483 0.29458835 c= a*b Present value -7,60,000.00 1,76,991.15 1,48,797.87 1,24,749.03 1,04,264.18     86,841.59     72,047.78     59,508.49     48,900.78     39,946.18     32,404.72 NPV = Total of present values    1,34,451.77

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