A stand-alone capital project has the following cash flows. $\begin{array}{lll}
\text { Year } & 0 &{1-5}\
\text { CashFlow } & (\$ 100,000) &{\$ 28,000}
\end{array}$ What is its NPV if the cost of capital is 10%?

Question

Quizplus · Accepted Answer

The NPV is calculated by discounting the cash flows at the cost of capital (10%) and summing them. The NPV is $6,142.

A Stand-Alone Capital Project Has the Following Cash Flows Year 01−5 CashFlow ($100,000)$28,000\begin{array}{lll}\text { Year } & 0 &{1-5}\\\text { CashFlow } & (\$ 100,000) &{\$ 28,000}\end{array} Year CashFlow ​0($100,000)​1−5$28,000​

A Stand-Alone Capital Project Has the Following Cash Flows $\begin{array}{lll}\text { Year } & 0 &{1-5}\\\text { CashFlow } & (\$ 100,000) &{\$ 28,000}\end{array}$