Reference no: EM132843571

1. Net present value Using a cost of capital of 16%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable.

1 The net present value (NPV) of the project is______________. (Round to the nearest cent.)

2 Is the project acceptable? (Select the best answer below.)_________ Yes or No

Data Table

Initial investment (CF0 ) - 1,152,000

Year (t) Cash inflows (CFt )

1 $81,000

2 $138,000

3 $195,000

4 $256,000

5 $313,000

6 $376,000

7 $277,000

8 $102,000

9 $50,000

10 $27,000