Ellmann Systems is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that if a project's expected NPV is negative, it should be rejected. $\begin{array}{lccc}
r& 9.00\%\
\text { Year: } &0& 1 & 2 & 3 \
\text { FCF: } & -\$ 1000 & \$ 500 & \$ 500& \$ 500
\end{array}$

Question

Ellmann Systems is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that if a project's expected NPV is negative, it should be rejected. $\begin{array}{lccc}
r& 9.00\%\
\text { Year: } &0& 1 & 2 & 3 \
 \text { FCF: } & -\$ 1000 & \$ 500 & \$ 500& \$ 500
\end{array}$

Quizplus · Accepted Answer

$$\begin{array} { l c c c c } 
\text { WACC: } & 9.00 \% & & &  \
\text { Cear } & 0 & 1 & 2 & 3 \
\text { Cash flows } & - \$ 1,000 & \$ 500 & \$ 500 & \$ 500
\end{array}$$ 
NPV = $265.65

Ellmann Systems Is Considering a Project That Has the Following r9.00% Year: 0123 FCF: −$1000$500$500$500\begin{array}{lccc}r& 9.00\%\\\text { Year: } &0& 1 & 2 & 3 \\ \text { FCF: } & -\$ 1000 & \$ 500 & \$ 500& \$ 500\end{array}r Year: FCF: ​9.00%0−$1000​1$500​2$500​3$500​

Ellmann Systems Is Considering a Project That Has the Following $\begin{array}{lccc}r& 9.00\%\\\text { Year: } &0& 1 & 2 & 3 \\ \text { FCF: } & -\$ 1000 & \$ 500 & \$ 500& \$ 500\end{array}$