Calculate the net present value for an investment project with the following cash flows using a 12 percent cost of capital:
A) $56,560
B) $30,000
C) $13,840
D) cannot be determined with information given

Question

Calculate the net present value for an investment project with the following cash flows using a 12 percent cost of capital: 
A) $56,560 
B) $30,000 
C) $13,840 
D) cannot be determined with information given

Quizplus · Accepted Answer

Solution:
NPV = SNCFt - NINV
= $80,000 (0.893) + 80,000 (0.797) - $30,000 (0.712) - $100,000
= $13,840

Calculate the Net Present Value for an Investment Project with the Following