Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Connect with a community of experts ready to help you find accurate solutions to your questions quickly and efficiently. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

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

#SPJ4

Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.