Compute the net present value if cost of capital is given

Reference no: EM131982257

Question: The Horizon Company will invest $99,000 in a temporary project that will generate the following cash inflows for the next three years. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Year	Cash Flow
1	37,000
2	34,000
3	95,000

The firm will also be required to spend $18,000 to close down the project at the end of the three years.

a. Compute the net present value if the cost of capital is 11 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.)

Reference no: EM131982257

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