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Calculating the Net present value of an Investment

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The following set of costs and benefits is given for a 5 - year period for a Malibu Beach Coral Mining.

Year 0 1 2 3 4 5
Cost (1000 of $) 3000
Cost of coastal erosion 200 200 200 200 200 200
Benefits
Revenues from limestone 4,500
Calculate the net present value of this project at 5% discount rate.

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Solution Summary

The problem deals with estimating the net present value of an investment.

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  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
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