Suppose that you will make project acceptance or rejection


Suppose you have the following initial outlay and free cash flow information on a potential investment project where upper management requires a payback period of 4 or fewer years (i.e. required payback period = 3.99999 years) and that investors' Required Rate of Return is 15%.

Also, suppose that you will make project acceptance or rejection decisions for each problem independently of decisions made in other problems.

What is the Project's Net Present Value (NPV)?






Period

CF



0

-100,000



1

13,000



2

50,000



3

31,000



4

34,000



5

18,000



6

16,000



7

12,000






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Financial Management: Suppose that you will make project acceptance or rejection
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