Explore BrainMass
Share

Explore BrainMass

    Project's NPV

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Project K costs $52,125, its expected net cash inflows are $12,000 per year for 8 years, and its WACC is 12%, What is the projects NPV?

    CFt = expected net cash flow at time t = $12,000
    r = the projects cost of capital or WACC
    N = is its life
    The cast outflow is $52,125

    © BrainMass Inc. brainmass.com October 10, 2019, 12:36 am ad1c9bdddf
    https://brainmass.com/economics/finance/project-s-npv-298206

    Solution Preview

    Project K costs $52,125, its expected net cash inflows are $12,000 per year for 8 years, and its WACC is 12%, what is the project's NPV?
    Solution:
    Year ...

    Solution Summary

    Project's NPV is calculated.

    $2.19