Daniel's market is considering a project with an initial cost of $176,500. the project will not produce any cash flows for the first three years. starting in year 4, the project will produce cash inflows of $127,500 a year for three years. this project is risky, so the firm has assigned it a discount rate of 17 percent. what is the project's net present value?

NPV = -$601.026

Explanation:

Using a financial calculator , you can solve this question with the following inputs and using the CF function. I'll be using TI BA II plus financial calculator;

After keying in each CF , press ENTER and scroll down twice before keying in the next cashflow;

CF0= -176,500

CF1= 0

CF2=0

CF3 =0

CF4 =127,500

CF5= 127,500

CF6 = 127,500

then press "NPV" button, then I = 17 and press CPT.

Therefore NPV = -$601.026

c

explanation:

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%