Question

tuttle enterprises is considering a project that has the following cash flow and weighted average cost of capital (wacc) data. what is the project's net present value (npv)? note that if a project's projected npv is negative, it should be rejected. wacc: 11.00% year 0 1 2 3 4 cash flows −$1,000 $350 $350 $350 $350

Answer 1

Tuttle enterprises are considering a project that has the following cash flow and the weighted average cost of capital (WACC) data. The projected net present value is 074.36.

A project's net present value is the sum of the destiny values of the net coin flows compounded at the desired fee of going back minus the net funding. if safety gives a series of coin flows with an NPV of $50,000 and an investor will pay exactly $50,000 for it, then the investor's NPV is $0. It method they'll earn something the cut price charge is on the security.

Net present value or NPV is the sum of the prevailing value of coins inflows and outflows. In other phrases, it's far the distinction between the present values of cash inflows and the prevailing value of cash outflows over a while.net gift cost shows how a lot of money an assignment or investment will advantage or lose in terms of the present-day budget. future coins drift would not carefully mirror the current cash drift of an undertaking because of the impact of factors along with inflation and lost compound hobby so NPV adjusts for this reason.

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