Net Present Value
Compute the Net Present Value for the following Project.
Initial investment $15,000
Interest rate: 13%
Cash Inflow Table is given below:
| Year | Cash Inflow |
| 1 | $1000 |
| 2 | $2500 |
| 3 | $4000 |
| 4 | $4500 |
| 5 | $5000 |
| 6 | $4500 |
- a) What is the breakeven point in months?
- b) What is the present value of the cash inflows each year?
- c) What is the total present value of the project?
- d) What is the net present value?
- e) What is the Internal Rate of Return?
