Determine the net present value for a project that costs $84,500 and would yield after-tax cash flows

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Determine the net present value for a project that costs $84,500 and would yield after-tax cash flows of $13,000 the first year, $15,000 the second year, $18,000 the third year, $20,000 the fourth year, $24,000 the fifth year, and $30,000 the sixth year. Your firm's cost of capital is 7.00%.

a. $6,493.19

b. $7,804.31

c. $120,000.00

d. $35,500.00

e. $19,278.64

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...
Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...
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