What is the Net Present Value (NPV) for the below series of project cash flows, assuming...

Question

Question

business finance

Answer 1

Answer #1

Net present value can be calculated using a financial calculator by inputting the below:

• Press the CF button.
• CF0= -$450,000.It is indicated the initial cash flow by a negative sign since it is a cash outflow.
• Cash flow for each year should be entered.
• Press Enter and down arrow after inputting each cash flow.
• After entering the last cash flow cash flow, press the NPV button and enter the discount rate of 7%.
• Press enter after that. Press the down arrow and CPT buttons to get the net present value.

The net present value is -$17,631.45.

Hence, the answer is option b.

In case of any query, kindly comment on the solution.

Answer 2

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