Consider the Obsidian Project, which requires an investment of $354,804 initially, with subsequent cash flows of...

Transcribed Image Text:

Consider the Obsidian Project, which requires an investment of $354,804 initially, with subsequent cash flows of $52,661, $78,720 and $91,440. We can characterize the project with the following end-of-year cash flows: Period Cash Flow 0 (354,804) 1 52,661 2 78,720 3 91,440 What is the net present value (NPV) of the Obsidian Project if the required rate of return for the project is 10%? Consider the Obsidian Project, which requires an investment of $354,804 initially, with subsequent cash flows of $52,661, $78,720 and $91,440. We can characterize the project with the following end-of-year cash flows: Period Cash Flow 0 (354,804) 1 52,661 2 78,720 3 91,440 What is the net present value (NPV) of the Obsidian Project if the required rate of return for the project is 10%?

Answer rating: 100% (QA)

year O L 2 3 cash flow b 44968300 5072000 7... View the full answer