A project has the following cash flows: $\begin{array}{lr}0&1&2&3\
()\$500
&\$100&\$200&\$250\end{array}$
What is the project's NPV if the interest rate is $6%?

Question

A project has the following cash flows: $\begin{array}{lr}0&1&2&3\
()\$500
&\$100&\$200&\$250\end{array}$
 What is the project's NPV if the interest rate is $6%?

Quizplus · Accepted Answer

The NPV is calculated by discounting each cash flow at the given interest rate and summing them up. The formula is: NPV = $-500 + \frac{100}{(1+0.06)^1} + \frac{200}{(1+0.06)^2} + \frac{250}{(1+0.06)^3}$. Calculating this gives an NPV of approximately $-17.76$.

A Project Has the Following Cash Flows 0123()$500$100$200$250\begin{array}{lr}0&1&2&3\\()\$500&\$100&\$200&\$250\end{array}0()$500​1$100​2$200​3$250​ What Is the Project's NPV If the Interest Rate Is

A Project Has the Following Cash Flows $\begin{array}{lr}0&1&2&3\\()\$500&\$100&\$200&\$250\end{array}$ What Is the Project's NPV If the Interest Rate Is