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

Question

A project has the following cash flows:

What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

What is the NPV at a discount rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

What is the NPV at a discount rate of 21 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

What is the NPV at a discount rate of 29 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Explanation / Answer

Year 0 1 2 3 CF -16800 7500 8800 7300 Dicount 0% -16800 7500 8800 7300 NPV 6800 Discount rate 11% Year 0 1 2 3 CF -16800 7500 8800 7300 Dicount 11% -16800 6756.757 7142.277 5337.697 NPV 2436.731 Discount rate 21% Year 0 1 2 3 CF -16800 7500 8800 7300 Dicount 21% -16800 6198.347 6010.518 4120.66 NPV -470.475 Discount rate 29% Year 0 1 2 3 CF -16800 7500 8800 7300 Dicount 29% -16800 5813.953 5288.144 3400.586 NPV -2297.32

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