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

 Business & Finance Tutor: None Selected Time limit: 1 Day

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

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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Jul 23rd, 2015
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Jul 23rd, 2015
Dec 2nd, 2016
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