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What Is the Net Present Value of a Project with a Cost

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What is the net present value of a project with a cost of $100 000 that generates cash flows of $40 000 over the next three years,and the required rate of return is 15%?


Definitions:

Forward Trade

A financial contract agreement to buy or sell assets at a specified future date and price, used primarily in commodity and currency markets.

Forward Exchange Rate

The agreed upon exchange rate for a currency pair to be traded at a future date, used in hedging and speculation.

Spot Exchange Rate

The current price for which one currency can be exchanged for another.

Foreign Exchange Market

A global marketplace for exchanging national currencies against one another.

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