Reed Enterprises is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected. $\begin{array}{lcccc}
r & 10.00 \% \
\text { Year } & 0 & 1 & 2 & 3 \
\text { Cash flows }& -\$ 1,050 & \$ 450 & \$ 460 & \$ 470
\end{array}$

Question

Reed Enterprises is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected. $\begin{array}{lcccc}
r & 10.00 \% \
\text { Year }  & 0 & 1 & 2 & 3 \
 \text { Cash flows }& -\$ 1,050 & \$ 450 & \$ 460 & \$ 470
\end{array}$

Quizplus · Accepted Answer

$\begin{array} { l c c c c } 
\text { WACC: } & 10.00 \% & & &  \
 \text { Cear } & 0 & 1 & 2 & 3 \
 \text { Cash flows } & - \$ 1,050 & \$ 450 & \$ 460 & \$ 470
\end{array}$ 
NPV = $92.37