Question:
What is the NVP of a project that costs 50 000 today and is
Last updated: 1/7/2023
What is the NVP of a project that costs 50 000 today and is expected to generate annual cash inflows of 7 000 for the next 9 years followed by a final inflow of 12 000 in year 10 Cost capital is 8 Round to the nearest whole dollar Hint Notice that the inflows constitute a combined annuity covered at the end of Chapter 2 TVM So when calculating the PV of inflows you will need to find the PV of the annuity with n 9 AND the PV of the 12 000 as a single cash flow with n 10