RWJ 7th Edition Solutions

8. The NPV of a project is the PV of the outflows minus by the PV of the inflows. The equation for the NPV of this project at an 11 percent required return is: NPV = – $30,000 + $20,000/1.11 + $14,000/1.112 + $11,000/1.113 = $7,423.84 . At an 11 percent required return, the NPV is … ................
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