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Calculating NPV of a Project - WACC and Cash Flow

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Humboldt Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected.

WACC: 9%

Year: 0 1 2 3 4 5

Cash flow -$1000 $300 $300 $300 $300 $300

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Solution Summary

The solution calculates NPV for a project for Humboldt Inc. The cash flow and WACC is provided.

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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