Operating Cash Flows

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Operating Cash Flows
Joyce, Student (MBA), United States, Member
What is the NPV of a project that has cost of 52,125 and net cash flows of 12,000 per year for 8 years with a cost of capital of 12 percent?...Sign up
 

 
Operating Cashflows
Mukela Namushi Mubano, Accountant, Zambia, Member
12,000 x 4.968 (discount factor) = 59,616.
NPV = 59,616 - 52,125 = 7,491
The project could be undertaken since the NPV is positive. However,...Sign up
 

 
NPV - Question on Calculating Discount Factor
KATHRYN STEINER, MBA, Entrepreneur, United States, Member
How did you calculate the discount factor of 4.968?...Sign up
 

 
Calculating Discount Factor
Mark May, Student (University), United States, Member
The discount factor is arrived from (p/a, i, n) using compound interest table, where under p/a I = 12, n=8.
Or in Excel =pv(i, n,-1) which is = p...Sign up
 

 
Caculating Discount Factor
KATHRYN STEINER, MBA, Entrepreneur, United States, Member
Right, finding the present value. Pv = fvn/(1+1)n
Thanks for the clarification....Sign up
 

 
NPV for Capital Budgeting
Management Fan, Analyst, Philippines, Member
The IRR is 16% which is higher than the discount factor use - 12%. In addition your payback period is around 4.35 year....Sign up
 

 
 

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