question archive The company is considering a project that will provide an annual cash flow of $38,000 starting at the end of year 6 and continuing until the end of year 17
The company is considering a project that will provide an annual cash flow of $38,000 starting at the end of year 6 and continuing until the end of year 17
Subject:AccountingPrice: Bought3
The company is considering a project that will provide an annual cash flow of $38,000 starting at the end of year 6 and continuing until the end of year 17. The project requires 4 investments of $15,000 each in the present and the following 3 years. The discount rate is 16.8%.
a) Compute the present value of positive cash flows in year 6 through 7: ...$ (Round to 2 decimal places)
b) Compute the present value of the investment costs between now and year 3: ...$ (Round to 2 decimal places)
c) Compute the NPV: ...$ (Round to 2 decimal places)
