Calculate the net present value - this is a positive npv


The value of an investment project.

Calculate the net present value (NPV) for the following 20 year projects.

Comment on the acceptability of each. Assume that the firm has an opportunity cost of 14%.

A). - Initial cash outlay is $15,000; cash inflows are $13,000 per year 20yrs of $13,000 at a 14% discount rate, its NPV is $71,100.70; this is a positive NPV and is an acceptable project

B). - Initial cash outlay is $32,000; cash inflows are $4,000 per year 20yrs of $4,000 at a 14% its NPV is $5,507.47, this is a negative NPV and isn't acceptable

C). - Initial cash outlay is $50,000; cash inflows are $8,500 per year 20yrs of $8,500 at a 14% discount rate its NPV is $6,296.61, this is a positive NPV and an acceptable project

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Financial Accounting: Calculate the net present value - this is a positive npv
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