Compute the NPV for Project K if the appropriate cost of capital is 7 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project K      Time:012345Cash flow:−$10,100$5,050$6,050$6,050$5,050−$10,100 NPV: ____.__

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Asked Nov 20, 2019
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Compute the NPV for Project K if the appropriate cost of capital is 7 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)
 

Project K            
Time: 0 1 2 3 4 5
Cash flow: −$10,100 $5,050 $6,050 $6,050 $5,050 −$10,100
 

NPV: ____.__

 

 

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Step 1

Calculation of NPV:

The NPV is $1,493.99.

Excel Spreadsheet:

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A В с Year Cash Flow FVIF@ 7% PV of Cash Flows ($10,100) $4,719.63 ($10,100) $5,050 $6,050 $6,050 $5,050 2 0 1.0000 1.0700 3 1 1.1449 $5,284.30 $4,938.60 $3,852.62 ($7,201.16 S1,493.99 4 2 5 1.2250 6 4 1.3108 ($10,100) 7 5 1.4026 8 NPV

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