Your company is considering investing in Project X. Your analysts estimate that

Question

Your company is considering investing in Project X. Your analysts estimate that this project will increase your company's net cash flows by $52441 in year 1, $152694 in year 2, and $279860 in year 3. For convenience, they treat these cash flows as occurring at the end of the respective years. Your analysts decided that the appropriate discount rate for this project is 3% per year, compounded annually. What is the present value of the cash flows expected from Project X? Do not round at intermediate steps in your calculation. Round your final answer to the nearest dollar. Enter your answer without the $ symbol.

Explanation / Answer

PV of cash flows from Project X             450,954 Statement showing Cash flows Particulars Time PVF 3% Amount PV Cash flows                      1.00                 0.9709                           52,441.00                           50,913.59 Cash flows                      2.00                 0.9426                         152,694.00                         143,928.74 Cash flows                      3.00                 0.9151                         279,860.00                         256,111.54 Present value of Cash flows                         450,953.88

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

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