FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A project has an initial cost of $60,000, expected net cash inflows of $15,000 per year for 8 years, and a cost of capital of 13%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to the nearest cent.
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Step 1
Net present value means the difference between the present value of cash inflow and present value of cash outflow.
If it is positive , then project should be accepted , otherwise rejected.
Necessary calculations has been made.
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