Net Present Value for the Project Assignment | Homework For You
June 9th, 2020
Managers at Terlingua Drilling identify a potential new drilling project. They estimate the following expected net cash flows if the project is adopted.

• Year 0: ($1,250,000)
• Year 1: $100,000
• Year 2: $400,000
• Year 3: $400,000
• Year 4: $200,000
• Year 5: $200,000
• Year 6: $300,000
• Year 7: $100,000
Suppose that the appropriate discount rate for this project is 12.7%, compounded annually, Calculate the net present value for this proposed project.Get Finance homework help today