A project has the following cash flows: Year Cash Flow 0 $-16,400 1 7,100 2 8,40

Question

A project has the following cash flows: Year Cash Flow 0 $-16,400 1 7,100 2 8,400 3 6,900 What is the NPV at a discount rate of zero percent? What is the NPV at a discount rate of 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places, What is the NPV at a discount rate of 20 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places What is the NPV at a discount rate of 30 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.

Explanation / Answer

NPV at a discount rate of zero percent= -16,400+7,100+ 8,400+6,900= $6000 NPV at a discount rate of 10 percent= -16,400+(7,100/1.1)+ (8,400/1.1^2)+(6,900/1.1^3)=$2180.766 NPV at a discount rate of 20 percent= -16,400+(7,100/1.2)+ (8,400/1.2^2)+(6,900/1.2^3)=$-656.944 NPV at a discount rate of 30 percent= -16,400+(7,100/1.3)+ (8,400/1.3^2)+(6,900/1.3^3)= $-2827.40

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.