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

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: 12% Year: 0 1 2 3 Cash flows: -$950 $500 $300 $400

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Answer #1

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

=500/1.12+300/1.12^2+400/1.12^3

=970.30

NPV=Present value of inflows-Present value of outflows

=970.30-950

=20.30(Approx).

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