Problem 10-01 npv a project has an initial cost of $66,950, expected net cash inflows of $14,000 per year for 9 years, and a cost of capital of 10%. what is the project's npv? (hint: begin by constructing a time line.) do not round your intermediate calculations. round your answer to the nearest cent. $

NPV = $13,676.33

Step-by-step explanation:

First, find the present value of the cash inflows. You can solve this question using a Financial calculator;

14,000 per year is a recurring cashflow hence the PMT

PMT = 14,000

I/Y = 10%

N= 9

FV =0

then CPT PV = 80,626.33

NPV = -Initial investment + PV of future cash inflows

NPV = -66,950 + 80,626.33

NPV = $13,676.33

"NPV" button, then , then "CPT".

The answer to the NPV = $13,676.33

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step-by-step explanation: