Calculating NPV at Various Discount Rates
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Please help with the following problem.
A project has the following cash flows:
Year Cash Flow
0 -$ 16,800
1 7,500
2 8,800
3 7,300
What is the NPV at a discount rate of zero percent?
What is the NPV at a discount rate of 11 percent?
What is the NPV at a discount rate of 21 percent?
What is the NPV at a discount rate of 29 percent?
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Solution Summary
Solution depicts the steps to estimate the NPV of given cash flows at different cash flows. Step by step calculations are given for each.
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Cash Flow at the beginning of project =CF0= -$ 16,800
Cash Flow at the end of year 1=CF1=$7,500
Cash Flow at the end of year 2=CF2=$ 8,800
Cash Flow at the end of year 3=CF3=$7,300
What is the NPV at a discount rate of ...
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
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