This document provides the cash flows for a project over 4 years and calculates the net present value (NPV) at discount rates of 0%, 12%, 19%, and 28%. It lists the cash flows for years 0 through 3, calculates the present value of each cash flow using the relevant discount rate, sums the present values, subtracts the initial investment, and provides the NPV rounded to two decimal places for each discount rate.

1. A project has the following cash flows:
What is the NPV at a discount rate of zero percent?
What is the NPV at a discount rate of 12 percent? ( Do not round intermediate calculations
and round your final answer to 2 decimal places. (e.g., 32.16))
What is the NPV at a discount rate of 19 percent? ( Negative amount should be indicated by a
minus sign. Do not round intermediate calculations and round your final answer to 2
decimal places. (e.g., 32.16))
What is the NPV at a discount rate of 28 percent? ( Negative amount should be indicated by a
minus sign. Do not round intermediate calculations and round your final answer to 2
decimal places. (e.g., 32.16))
A project has the following cash flows:
Solution
NPV at zero percent
NPV at 12 %
NPV at 19%
NPV at 28%
Year Cash Flow
PV Factor =
1/(1+r)^n
Present Value = Cash
Flow * PV factor
0 ($16,300) 1.0000 ($16,300.00)
1 $7,000 1.0000 $7,000.00
2 $8,300 1.0000 $8,300.00
3 $6,800 1.0000 $6,800.00
Sum of Present Value of the Cash Flows $22,100.00

2. Less: Amount invested ($16,300.00)
Net Present value = Total PV - Intial Investment $5,800.00