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?