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.
Year:0 1 2 3 4
Cash flows:-$1,000 $400 $405 $410 $415
NPV of a project is calculated as
Sum of PV of cash flows - ...
The solution explains how to calculate the NPV of the project