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compute the NPV statistic for project U FINANCE w.WK 9 CH 12 Est. Cash Flows on

ID: 2798651 • Letter: C

Question

compute the NPV statistic for project U FINANCE w.WK 9 CH 12 Est. Cash Flows on Projects, 13 Weighing NPV &Other; Capital Budgeting Criteria Queste value 3.00 points Compute the NPV statistic for Project U it the appropriate cost of capital is 9 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project U Time Cash flow-$2,150 $610 $2,130-$650 $560 $230 Should the project be accepted or rejected? O Rejected O Accepted Hints References eBook& Resources nt#1 Hint 2 Hint #3 Hint 0 Type here to search IO Everu Mondau

Explanation / Answer

NPV = -52.27

rejected

9.00% Cash flows Year Discounted CF                      (2,150.00) 0 -2150.00                            610.00 1 559.63                         2,130.00 2 1792.78                          (650.00) 3 -501.92                            560.00 4 396.72                          (230.00) 5 -149.48