Gomi Waste Disposal is evaluating a project that would last for 4 years. The project’s cost of capital is 5.12 percent; its NPV is 54,648 dollars; and the expected cash flows are 4,900 dollars at time 0, 27,210 dollars in 1 year, -38,290 dollars in 2 years, and X in 4 years. What is X?
NPV=Present value of cash flows
54648=4900+27210/1.0512-38290/1.0512^2+X/1.0512^4
=>X=(54648-(4900+27210/1.0512-38290/1.0512^2))*1.0512^4
=>X=71450.084
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