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# Calculating NPV at Various Discount Rates

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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?

##### 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.

##### Solution Preview

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 ...

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###### Education
• BEng (Hons) , Birla Institute of Technology and Science, India
• MSc (Hons) , Birla Institute of Technology and Science, India
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