What is the net present value of a project that has an initial cash outflow of A

Question

What is the net present value of a project that has an initial cash outflow of AED 12,670 and the following cash inflows?

Year

Cash Flows AED

Year 1

4,375

Year 2

Year 3

8,750

Year 4

4,100

Year

Cash Flow

PVIF (11% n)

Present Value

12,670

1 .oooo

-12,670.00

1

4,375

0.9009

2

0.81 16

0.00

3

8 750

0.7312

6,398.00

4

4,100

0.6587

2,700.67

NPV

370.11

Year

Cash Flows AED

Year 1

4,375

Year 2

Year 3

8,750

Year 4

4,100

Year

Cash Flow

PVIF (11% n)

Present Value

12,670

1 .oooo

-12,670.00

1

4,375

0.9009

2

0.81 16

0.00

3

8 750

0.7312

6,398.00

4

4,100

0.6587

2,700.67

NPV

370.11

Explanation / Answer

Answer:

Year Cash Flow PVIF (11%) Present value 0 -12670 1.000 -12670.00 1 4375 0.901 3941.44 2 0.812 0.00 3 8750 0.731 6397.92 4 4100 0.659 2700.80 NPV 370.16

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

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