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Net Present Value

A proposed project can generate savings of $1000 per year for 10 years. The initial cost of the project is $2500 and the project has a salvage value of $500 in the 10th year. What is the Net Present Value of the project to the nearest dollar if the discount rate is 10%?

keywords: NPV

Solution Preview

Annual payment = 1000
Years = 10
At the end of the 10th year, FV = ...

Solution Summary

NPV is calculated.