Calculation of net present value with given cash flow
Suppose a firm has a weighted average cost of capital of 8%. Given the following cash flows, compute the NPV and the appropriate rate of return. Note that a negative sign denotes an outflow and a positive sign an inflow.
CF 0
|
CF 1
|
CF 2
|
CF 3
|
CF 4
|
|
|
|
|
|
-200
|
100
|
500
|
-100
|
700
|