Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project Y Time: 0 1 2 3 4 Cash flow: –$8,400 $3,710 $4,540 $1,880 $660
NPV = Present value of cash inflows - present value of cash outflows
NPV = -8,400 + 3,710 / (1 + 0.11)1 + 4,540 / (1 + 0.11)2 + 1,880 / (1 + 0.11)3 + 660 / (1 + 0.11)4
NPV = -8,400 + 3,342.3423 + 3,684.7658 + 1,374.6398 + 434.76244
NPV = $436.51
Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent....