What is the NPV of a project that costs $14,000 today and another $6,000 in one year, and is then expected to generate 12 annual cash inflows of $2,000 starting at the end of year 5. Cost of capital is 9%. Round to the nearest cent. [Hint: There are two outflows here, today and year 1. You will need to discount the year 1 cost at the project's discount rate when calculating PV(outflows).] Numeric Answer:

What is the NPV of a project that costs $14,000 today and another $6,000 in one year, and is then expected to generate 12 annual cash inflows of $2,000 starting at the end of year 5. Cost of capital is 9%. Round to the nearest cent. [Hint: There are two outflows here, today and year 1. You will need to discount the year 1 cost at the project's discount rate when calculating PV(outflows).] Numeric Answer:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...

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