You are currently evaluating a project with the following expected cash flows: i

Question

You are currently evaluating a project with the following expected cash flows: initial investment of $-60 in year 0, followed by positive cash flows in years 1 to 4 of $20, $2, $4 and $2, respectively. The WACC is 23%. What is this projects NPV? It is recommended that you use at least 4 decimals to do your work, then round the final answer. Round your answer to 2 decimals. Do not use symbols like percentage (%) or dollar signs ($). If NPV is negative, use the '-' sign when entering your answer. For example, if NPV = $ -50.27, enter -50.27

Explanation / Answer

Year Cash flow PVF@23% Present value 0 $         (60) 1.000 $            (60.00) 1 $            20 0.813 $              16.26 2 $              2 0.661 $                1.32 3 $              4 0.537 $                2.15 4 $              2 0.437 $                0.87 Total pesent value -39.39

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