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NPV

1. Rappaport Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.

WACC:
10.00%
Year:0 1 2 3 4
Cash flows:-$1,000 $400 $405 $410 $415

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Solution Preview

NPV of a project is calculated as
Sum of PV of cash flows - ...

Solution Summary

The solution explains how to calculate the NPV of the project

$2.19