Loading...
CFA Level 1
Corporate Finance

NPV Calculation for Project Evaluation

Easy Capital Budgeting Project Analysis

A company is evaluating a new project that requires an initial investment of $250,000. The project is expected to generate cash inflows of $80,000 at the end of each year for the next four years. The company uses a discounted cash flow (DCF) approach for project analysis and has a required rate of return of 10%.

What is the Net Present Value (NPV) of this project, and should the company proceed with it based on the NPV rule?

Hint

Submitted14.4K
Correct11.9K
% Correct83%