Problem 10-01 npv a project has an initial cost of $66,950, expected net cash inflows of $14,000 per year for 9 years, and a cost of capital of 10%. what is the project's npv? (hint: begin by constructing a time line.) do not round your intermediate calculations. round your answer to the nearest cent. $

NPV = $13,676.33

Step-by-step explanation:

First, find the present value of the cash inflows. You can solve this question using a Financial calculator;

14,000 per year is a recurring cashflow hence the PMT

PMT = 14,000

I/Y = 10%

N= 9

FV =0

then CPT PV = 80,626.33

NPV = -Initial investment + PV of future cash inflows

NPV = -66,950 + 80,626.33

NPV = $13,676.33

"NPV" button, then , then "CPT".

The answer to the NPV = $13,676.33

step-by-step explanation:

you can add the two numbers and divide the result by 2. or you can find the gap between the two numbers and add half of this to the smaller number.

the expression (1.26)2t reveals the approximate rate of increases in the number of plants semiannually.

hope this : )