If the firm is facing a discount rate of 11 what is the npv


A firm is considering a project that has the following estimated cashflows:

  • Increased sales to business of $160,000 for the next 5 years (starting in one year's time).
  • Increased costs of $20,000 for the next five years (starting in one year's time).
  • The initial capital expenditure required is $100,000, and salvage value at the end of 5 years is expected to be $30,000.
  • Cost of the feasibility study is $10,000. 

If the firm is facing a discount rate of 11%, what is the NPV of this project?

Solution Preview :

Prepared by a verified Expert
Basic Computer Science: If the firm is facing a discount rate of 11 what is the npv
Reference No:- TGS02903724

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)