Project Health One (H1) has a cost of $76,543, it expected net cash flows are $20,000 per year for 6 years, and its cost of capital is 10%. Calculate the project’s NPV. Please show work.
Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
=$20000[1-(1.1)^-6]/0.1
=$20000*4.355260699
=$87105.21
NPV=Present value of inflows-Present value of outflows
=$87105.21-$76543
=$10562.21(Approx).
Project Health One (H1) has a cost of $76,543, it expected net cash flows are $20,000...