Answered

Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Discover a wealth of knowledge from experts across different disciplines on our comprehensive Q&A platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

What is the npv for a project whose cost of capital is 15 percent and initial after-tax cost is $5,000,000 and is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and $1,300,000 in year 4?.

Sagot :

The NPV for a project given its cost of capital, cost and cash inflows from year 1 to 4 is $-137,052.83

What is the NPV?

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

  • Cash flow in year 0 = $-5,000,000
  • Cash flow in year 1 = $1,800,000
  • Cash flow in year 2 = $1,900,000
  • Cash flow in year 3 = $1,700,000
  • Cash flow in year 4 = $1,300,000

i = 15%

NPV = $-137,052.83

To learn more about net present value, please check: https://brainly.com/question/25748668

#SPJ1

We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.