Lecture 1A – Slide 17: Sample Question and Answers
on Net Present Value
Question: A five-year project has a projected net cash flow of $15,000,
$25,000, $30,000, $20,000 and $15,000 in the next five years. It will cost
$50,000 to implement the project. The required rate of return is 20
percent. What is the NPV of the project?
Sample answer 1:
Formula