A company is considering a project that requires an initial cost of $44,500. The project will generate atra net cash inflows of $1,100 in year one, $5,700 in year two, $14,500 in year three, $16,000 in year tour and $18,500 in year five. What is the NPV using 6% as the discount rate? NOTE: Enter amounts rounded to two decimals (e.g., 78.76 or 40.00) Net Cash Inflow Year 0 2 3 5 $1,100 $5,700 $14,500 $16,000 $18,500 NPV Total PV $ S

Principles of Accounting Volume 2
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Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EB: Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two,...
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A company is considering a project that requires an initial cost of $44,500. The project will generate tra
net cash inflows of $1,100 in year one, $5,700 in year two, $14,500 in year three, $16,000 in year tour and
$18,500 in year five. What is the NPV using 6% as the discount rate?
NOTE: Enter amounts rounded to two decimals (e.g., 78.76 or 40.00)
Year
0
1
2
3
4
5
Net Cash Inflow
$1,100
$5,700
$14.500
$16,000
$18,500
NPV Total
PV
S
$
S
$
Transcribed Image Text:7 red ed out of Flag question A company is considering a project that requires an initial cost of $44,500. The project will generate tra net cash inflows of $1,100 in year one, $5,700 in year two, $14,500 in year three, $16,000 in year tour and $18,500 in year five. What is the NPV using 6% as the discount rate? NOTE: Enter amounts rounded to two decimals (e.g., 78.76 or 40.00) Year 0 1 2 3 4 5 Net Cash Inflow $1,100 $5,700 $14.500 $16,000 $18,500 NPV Total PV S $ S $
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