Question: how would I use this formula to solve this equation without excel or a calculator? a 2. A project will produce cash inflows of $3,200

how would I use this formula to solve this equation without

excel or a calculator? a 2. A project will produce cash inflows

how would I use this formula to solve this equation without excel or a calculator?

a 2. A project will produce cash inflows of $3,200 a year for 4 years with a final cash inflow of $5,700 in year 5. The project's initial cost is $9,500. What is the net present value of this project if the required rate of return is 16 percent? Chapter 8: Capital Budgeting Net Present Value (NPV) NPV = PV(CF Inflow) - PV(CF Outflow N OF Outions Internal Rate of Return (IRR) = n * CF, Outflows h CF Inflows h CE Inflows (1 + IRR)" = h=0 h (1+ IRR)" h=0 h=0 (1+i)" CF hizo (1+i)" When you have a single cash outflow at t=0: - Inflows NPV = -Cost At IRR, PV(Cpinflow)=PVC Foutflow) When you have a single cash outflow at t=0: CF, Initial Investment (or Cost) = CF Infows h = ho (1+i)" h= (1+IRR)" Profitability Index PV(CFIN) PV(CPOUT)

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