Your firm is looking at a new investment opportunity, Project Alpha, with net cash flows as follows:

Question

---- Net Cash Flows ----
Project Alpha

Initial Cost at T-0 (Now) ($10,000)
cash inflow at the end of year 1 6,000
cash inflow at the end of year 2 4,000
cash inflow at the end of year 3 2,000

Calculate project Alpha's Net Present Value (NPV), assuming your firm’s required rate of return is 10%.

Answer 1

10000