What is the net present value of a project with the following cash flows if the required rate of return is 9 percent? year cash flow 0 -45000 1 18201 2 21219 3 17800 A. 2 ,57 4 . 32B. 3,302.64C. 4 ,904.6 2D.$ 3 ,029. 21 相关知识点: 试题来源: 解析 B 反馈...
What is the net present value of a project that has an initial cost of $49,000 and produces cash inflows of $8,000 a year for 17 years if the discount rate is 15 percent? What is the net present value and IRR of a proj...
Learn about what net present value is, how it is calculated both for a lump sum and for a stream of income over multiple years. View some examples on NPV. Related to this QuestionWhat is the net present value of the project if the appropriate discount rate is 20%? If a...
Perhaps the actual rate is expected to be 15.7% which may be a great return, but because it’s less than the required 16%, the investment will be rejected because of its negative net present value. [To find the exact rate that a project is expected to earn, the project’s cash ...
NPV is the net present value. Rt represents the net cash inflow during a specific period (t). i is the discount rate or the cost of capital. t denotes the number of time periods. C0 is the initial investment. Calculate the present value for each time period: For each time period (t...
What Is Net Present Value (NPV)? The net present value (NPV) indicates the current value of money earned in the future. It is a method of calculating a project or business’ projected ROI. REtipster does not provide tax, investment, or financial advice.Always seek the help of a licensed...
Net Present Value (NPV) is a financial calculation used to determine the value of an investment or project in today’s dollars by taking into account the expected future cash flows and the time value of money (the concept that a sum of money is worth more now than the same sum will be...
If capital is limited, then it may not be possible to accept every project with a positive NPV. When capital is rationed, the goal is to select the package of projects that gives the highest net present value. For example, consider the following investment opportunities (in millions of dolla...
Question: Find the NET PRESENT VALUEWHAT IS THE NET PRESENT VALUE? There are 2 steps to solve this one.
project that this piece of equipment will help you win projects that will generate $50,000 in contracts each year for the next five years. Assuming a 10% discount rate, your investment will have an NPV of $64,539. Because the NPV is positive, it makes sense to purchase a motor grader...