What is the net present value of the project

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1. Middlefield Motors is evaluating a project that would cost 5,700 dollars today. The project is expected to have the following other cash flows: 2,830 dollars in 1 year, -2,230 dollars in 2 years, and 5,350 dollars in 4 years. The cost of capital of the project is 6.68 percent. What is the net present value of the project?

2. Gomi Waste Disposal is evaluating a project that would require an initial investment of 57,400 dollars today. The project is then expected to produce annual cash flows that grow by 2.83 percent per year forever. The first annual cash flow is expected in 1 year and is expected to be 3,070 dollars. The project’s internal rate of return is 8.18 percent and its cost of capital is 9.76 percent. What is the net present value (NPV) of the project?

Reference no: EM131891518

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