Beta Enterprises, Inc. is considering a project that has the following cash flow and WACC data....

Question

Question

Beta Enterprises, Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.
WACC:	11%
Year:	0	1	2	3
Cash flows:	-$950	$500	$300	$400

business finance

Answer 1

Answer #1

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=500/1.11+300/1.11^2+400/1.11^3

986.41(Approx).

NPV=Present value of inflows-Present value of outflows

=986.41-950

which is equal to

=36.41(Approx).

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Answer 2

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