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sweet [91]
3 years ago
13

Curtis is considering a project with cash inflows of $918, $867, $528, and $310 over the

Business
1 answer:
enyata [817]3 years ago
8 0

Answer:

A) $20.98

Explanation:

First, find the PV of each cash inflow;

PV(of CF1) = 918/(1.11) = 827.0270

PV(of CF2) = 867 / (1.11²) =703.6766

PV(of CF3) = 528/(1.11³) = 386.0690

PV(of CF4) = 310 / (1.11^4) =204.2066

Sum up the PVs;

= 827.0270 + 703.6766 + 386.0690 + 204.2066

= $2,120.9792

NPV = -initial investment + SUM of PVs of future cash inflows

= -2,100 + 2,120.9792

= $20.98

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