What is the NPV of a project that costs $13,000 today and another $7,000 in one year, and is then expected to generate 11 annual cash inflows of $3,000 starting at the end of year 4. Cost of capital is 10%. Round to the nearest dollar.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 15EB: Project X costs $10,000 and will generate annual net cash inflows of $4,800 for five years. What is...
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What is the NPV of a project that costs $13,000 today
and another $7,000 in one year, and is then expected
to generate 11 annual cash inflows of $3,000 starting at
the end of year 4. Cost of capital is 10%. Round to the
nearest dollar.
Transcribed Image Text:What is the NPV of a project that costs $13,000 today and another $7,000 in one year, and is then expected to generate 11 annual cash inflows of $3,000 starting at the end of year 4. Cost of capital is 10%. Round to the nearest dollar.
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