A project has the following cash flows: What is the NPV at a discount rate of 30

Question

A project has the following cash flows: What is the NPV at a discount rate of 30 percent ? (Do not round intermediate calculations and round your final answer to 2 decimal places, (e. g. , 32, 16)) 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, (e. g. , 32. 16)) 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. (e. g. , 32, 16))

Explanation / Answer

Hi, Please find the answer as follows: Part A: At 0% = -16400 + 7100/(1+.0)^1 + 8400/(1+.0)^2 + 6900/(1+.0)^3 = 6000 At 10% = -16400 + 7100/(1+.1)^1 + 8400/(1+.1)^2 + 6900/(1+.1)^3 = 2180.77 At 20% = -16400 + 7100/(1+.2)^1 + 8400/(1+.2)^2 + 6900/(1+.2)^3 = -656.94 At 30% = -16400 + 7100/(1+.3)^1 + 8400/(1+.3)^2 + 6900/(1+.3)^3 = -2827.40 Thanks.

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