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    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 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 ...

    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.

    $2.49

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