Question

What is the NPV of the project: initial investment amount is $10 million, and the cost of capital is 10%. The project's life is 10 years. The net cash inflow at the end of each year is $1 million for the first consecutive 5 years, and $2 million for the second consecutive 5 years. 5 million 0.5 million -1.5 million 1.5 million

          What is the NPV of the project: initial investment amount is $10 million, and the cost of capital is 10%. The project's life is 10 years. The net cash inflow at the end of each year is $1 million for the first consecutive 5 years, and $2 million for the second consecutive 5 years.
5 million
0.5 million
-1.5 million
1.5 million
        
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What is the NPV of the project: initial investment amount is 10 million, and the cost of capital is 10%. The project's life is 10 years. The net cash inflow at the end of each year is $1 million for the first consecutive 5 years, and $2 million for the second consecutive 5 years.
5 million
0.5 million
-1.5 million
1.5 million

Added by Raymond M.

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Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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Cash inflow at the end of each year is $1 million for the first consecutive 5 years, and $2 million for the second consecutive 5 years.
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00:01 Question is problem 0 .04 .062 varying interest rates for the cash flow cash flow so determine the future work in five years five years okay in year five okay so they have given the table form as zero one to four five cash flow that is in dollar per year is of five case six k 9k and estimated i per year is 12 % 11 % and 19 % all right so if we form the table for we'll get the desired result let's see here let's put here in the second column put cash flow again in the third one we'll put the rate and lastly we'll put future value right in zero here cash flow was 5 ,000 interest rate was 12 % so if we'll calculate it will come out to be 8 ,811...
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