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Consider a project with the following cash flows: year 1, -$400; year 2, $200; year 3, $600; year 4, -$900; vear 5, $1,0
Posted: Wed Jul 06, 2022 6:03 am
by answerhappygod
- Consider A Project With The Following Cash Flows Year 1 400 Year 2 200 Year 3 600 Year 4 900 Vear 5 1 0 1 (35.58 KiB) Viewed 17 times
Consider a project with the following cash flows: year 1, -$400; year 2, $200; year 3, $600; year 4, -$900; vear 5, $1,000; year 6, $250: year 7, $230. Assume a discount rate of 15% per year. Round all your answers to the nearest dollar amount. a. Find the project's NPV if cash flows occur at the ends of the respective years. b. Find the project's NPV If cash flows occur at the beginnings of the respective years. c. Find the project's NPV if cash flows occur at the middles of the respective years. Discount Rate Years NPV NPV Cash Flow NPV 0 1 $ 2 $ 3 5 4 S 5 $ 6 $ 75 15.0% (400.00) 200.00 600.00 (900.00) 1,000.00 250.00 230.00 Part A: End of Years Part B: Beginning of Years Part C: Middle of Years $ 402 21 Discount Factor