A five year project has a projected net cash flow of $15,000, $25,000, $30,000, $20,000, and $15,000 in the next five years. It will cost $50,000 to implement the project. If the required rate of return is 20%, conduct a discounted cash flow calculation to determine the Net Present Value.© BrainMass Inc. brainmass.com June 3, 2020, 10:43 pm ad1c9bdddf
NPV = Sum of PV of cash inflows - initial investment
PV is calculated as ...
This solution explains how to determine the net present value with calculations and the answer for the given problem.