Net Present Value for a Five Year Project

A five year project has a projected net cash flow of $15,000, $25,000, $30,000, $20,000, and $15,000 in the next five years. It will cost $50,000 to implement the project. If the required rate of return is 20%, conduct a discounted cash flow calculation to determine the Net Present Value.

© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/finance/net-present-value-for-a-five-year-project-7ggf

Solution Preview

...(1+rate)^n
Here
rate = 20%
n = the year in which the cash flow occurs
The ...