A proposed 3-year project has expected annual cash inflows of $5,600,$7,900,and $11,200,for Years 1 to 3,respectively.What is the net present value of this project at a discount rate of 16 percent if the initial cost is $7,800?

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Quizplus · Accepted Answer

PV = -$7,800 + $5,600 / 1.16 + $7,900 / 1.16² + $11,200 / 1.16³ = $10,073.94 11ea6c22_9307_0500_9716_4de26c01a296_TB1200_00

A Proposed 3-Year Project Has Expected Annual Cash Inflows of $5,600,$7,900,and