# What is the project's NPV

Sorenson Stores is considering a project that has the following cash flows:

Year Cash Flow

0 CF0 = ?

1 $2,000

2 3,000

3 3,000

4 1,500

The project has a payback of 2.5 years, and the firm's cost of capital is 12%. What is the project's NPV?

© BrainMass Inc. brainmass.com October 10, 2019, 12:49 am ad1c9bdddfhttps://brainmass.com/business/net-present-value/what-is-the-project-s-npv-309158

#### Solution Summary

The solution computes a project's NPV.

$2.19