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Net Present Value with Required Return for Assets

You are looking at a new project and you have estimated the following cash flows:

Year 0:CF = ($147,500)
Year 1:CF = $58,100
Year 2:CF = $62,900
Year 3:CF = $175,110

Your required return for assets of this risk is 12%.
Calculate net present value.

Solution Preview

Net present value = Sum of PV of cash inflows - Initial investment

To ...

Solution Summary

The solution explains how to calculate the net present value given the cash flows