What is the net present value of project at discount rate

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Peir Inc. is considering a project that contributes $10,000 at the end of the first year and $5000 at the end of the second year? The initial cost of the project is $8,000. What is the net present value of the project at a 10% discount rate?

Hint: Net present value is the sum of all present and future cash flows but present cash flows at t = 0 are not discounted; all other cash flows occurring after t = 0 must be discounted $ 12,793.76 $ 7,000.00 $ 4,132.23 $ 5,223.14 $ 6,187.38

Reference no: EM13878737

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