I need help with number 6 4 A project that provides anmual cash flows of $2,880

Question

I need help with number 6

4 A project that provides anmual cash flows of $2,880 for the first five years and $2,110 for the next three years costs $3.400 today. At a required return of 9.2%, what is the NPV of the project? 5 An investment project that costs $45,000 provides cash inflows of $7,180 in year 1: $9,560 in year 2$10,820 in year 3, $7,380 in year 4 and $9,230 in year 5. What is the NPV of the project if the cost of capital is 7.1 %? 6 An investment project that costs S12,350 provides cash flows af $13,600 in year 1 ; $19,560 in year 2;-$8,820 in year 3.-S5380 in year 4, and $8,230 in year 5 . what is the NPV of the project if the cost of capital is 8.6%? (Hint: note that negatve sign in the cash flows for year 3 & 4, means they are cash outfiow 7 In question #6 above, do you accept or reject the project? Enter 1 if accept o if reject.

Explanation / Answer

6.

NPV=-12350+13600/1.086^1+19560/1.086^2-8820/1.086^3-5380/1.086^4+8230/1.086^5

=11451.97

the above is the answer based on all data

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