Calculate NPV of a project with the following cash flows and a 12% discount rate

Business & Finance
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1. Calculate the NPV of a project with the following cash flows and a 12% discount rate:

Year 0 1 2 3 4 Cash Inflows $0 $125 $150 $200 $225 Cash Outflows $400 $150 $100 $50 $50 From years 5 – 9, you will receive net cash inflows of $100 per year (hint: use ordinary annuity valuation formula with 12% as the interest rate, and be careful when deciding how many periods it takes to discount it to the present value).

Jul 23rd, 2015

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Year 0 1 2 3 4 Cash Inflows $0 $125 $150 $200 $225 Cash Outflows $400 $150 $100 $50 $50 From years 5 – 9, you will receive net cash inflows of $100 per year (hint: use ordinary annuity valuation formula with 12% as the interest rate, and be careful when deciding how many periods it takes to discount it to the present value).

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Jul 23rd, 2015

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Jul 23rd, 2015
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Jul 23rd, 2015
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