Noble Tech is considering the following project. The estimated cost of the project in the current year is $634,000. The
Posted: Thu May 19, 2022 12:01 am
Noble Tech is considering the following project. The estimated
cost of the project in the current year is $634,000. The project is
expected to generate cash flows in the amount of $391,000 in the
first and second year, followed by $1,300,000 in year 3 through
year 5. No cash flow is expected after year 5. The company uses a
discount rate of 14.1% for similar projects. Calculate
the NPV of this project. (Round
your answer to the nearest dollar).
cost of the project in the current year is $634,000. The project is
expected to generate cash flows in the amount of $391,000 in the
first and second year, followed by $1,300,000 in year 3 through
year 5. No cash flow is expected after year 5. The company uses a
discount rate of 14.1% for similar projects. Calculate
the NPV of this project. (Round
your answer to the nearest dollar).