Homework Help: Finance

Posted by Casonya on Thursday, May 17, 2012 at 9:41pm.

Your firm is looking at a new investment opportunity, Project Alpha, with net cash flows as follows:
---- Net Cash Flows ----
Project Alpha

Initial Cost at T-0 (Now) ($10,000)
cash inflow at the end of year 1 6,000
cash inflow at the end of year 2 4,000
cash inflow at the end of year 3 2,000

Calculate project Alpha's Net Present Value (NPV), assuming your firm’s required rate of return is 10%.

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