A) Find the net present value of a project that has cash flows of -$15,550 in year 1, +$6,000 in Year 2, +$6,500 in Year 3, -$2,890 in year 4, and +$7,200 in years 5 and 6. Use an interest rate of 12%.

B) Find the interest rate that gives a net present value of zero.

C) Find the net present value if Year 6 returns only $4,200. What does the newly calculated net present value indicate?

Answer rating: 100% (QA)

Solution A Calculation of Net present value of a project Year Cash flows PV factor at 12 PV of cash ... View the full answer