# Net present value of a project

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What is the net present value of a project with the following:

-initial cost of fixed assets is $90,000 which will be worthless at the end of the project

-will generate cash flows of $40,000 per year for 5 years

-additional net working capital of $5,000 is required over the life of the project

-required rate of return is 15%

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What is the net present value of a project with the following:Â

-initial cost of fixed assets is $90,000 which will be worthless at the end of the ...

#### Solution Summary

The solution helps in computing Net present value of a project.

$2.49