Answered

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A project has a required return of 12. 6 percent, an initial cash outflow of $42,100, and cash inflows of $16,500 in year 1, $11,700 in year 2, and $10,400 in year 4. what is the net present value?

Sagot :

Net present value is $11,748.69

Here, We have

PV  = FV / (1+r)^n

r = 12.6%

1. PV = $16,500 x (1+12.6%)^-1 = $14,654

2 PV = $11,700 x (1+12.6%)^-2 = $9,228

3 PV = $10,400 x (1+12.6%)^-4 = $6,470

Year      Cash flow    Present Value

 0          ($42,100)      ($42,100)

 1           $16,500        $14,654

 2          $11,700         $9,228

 4          $10,400        $6,470    

NPV               =           $11,748

To learn more about cashflow from the given link

https://brainly.com/question/14898228

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