A project has an initial cost of $55,000, expected net cash inflows of $10,000 per year for 12 years, and a cost of capital of 11%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to the nearest cent.

NPV= $9,923.56

Step-by-step explanation:

Giving the following information:

Initial cost= -$55,000

Cash flows= $10,000

Cost of capital= 11%

To calculate the net present value, we need to use the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

First, we need to discount the cash flows:

PV= Cfn / (1+i)^n

Cf1= 10,000/1.11= 9,009.01

Cf2= 10,000/1.11^2= 8,116.22

Cf3= 10,000/1.11^3= 7,311.91

Cf12= 10,000/1.11^12= 2,858.41

Total PV= $64,923.56

Now, the NPV:

NPV= -55,000 + 64,923.56

NPV= $9,923.56

hey there!

if she's saving for six months, let's divide the total number we need for the trip by six, dividing it into the amount that needs to be saved for each month.

500 ÷ 6 =

she needs to save at least this amount each month, so we should use this symbol: ≥

let x be the amount she saves each month.

your final answer is x ≥

hope this !

lo.lll

step-by-step explanation: