Question: Compute the Net Present Value for the following Project. Initial investment $15,000 Interest rate: 13% Cash Inflow Table is given below: Year Cash Inflow 1

Compute the Net Present Value for the following Project.

Initial investment $15,000

Interest rate: 13%

Cash Inflow Table is given below:

Year Cash Inflow
1 $1000
2 $2000
3 $4000
4 $4000
5 $5000
6 $6000

a) What is the breakeven point in months? plot the graph

b) What is the present value of the cash inflows in each year?

c) What is the total present value of the project?

d) What is the net present value?

e) What is the Internal Rate of Return?

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