What is the net present value of
What is the net present value of a project with the following cash flows if the discount rate is 15 percent?
year cashflow
0 -39,400
1 12800
2 21700
3 18100
What is the net present value of a project with the following cash flows if the discount rate is 15 percent?
year cashflow
0 -39,400
1 12800
2 21700
3 18100
=12800/((1+0.15)^1)+21700/((1+0.15)^2)+18100/((1+0.15)^3)-39400=39.80
at 7%
4500/((1+0.07)^1)+8700/((1+0.07)^2)+11900/((1+0.07)^3)-17000=4518.47
at 20%
=4500/((1+0.20)^1)+8700/((1+0.20)^2)+11900/((1+0.20)^3)-17000=-321.75
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