Discounted cash flow - self-test questions
Why not have a go at the following examples to see how well you have understood the calculation of discounted cash flow and net present value?
A firm has to choose between three possible projects and the details of each project are as follows:
|Net cash inflow ($000)|
|Project A||Project B||Project C|
Assume a discount rate of 8%. The discount factors for this are given in the table below.
|Discount factors 8%|