# Project L costs $35,000, its expected cash inflows are $9,000 per year for 7 years, and its WACC...

## Question:

Project L costs $35,000, its expected cash inflows are $9,000 per year for 7 years, and its WACC is 13%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

## Net Present Value:

It is capital budgeting techniques used by the finance managers of the company to evaluate the investments. In this technique the present value of all cash inflows and cash outflows are calculated at the expected rate of cost of capital of the project. The projects having the highest net present value is considered for investment.

## Answer and Explanation: 1

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View this answerThe following information is given for Project L

- the cash outflow at beginning of the project is $35,000 in way of investment
- The cash inflows every...

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Chapter 5 / Lesson 20Learn about what net present value is, how it is calculated both for a lump sum and for a stream of income over multiple years. View some examples on NPV.

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