Respuesta :
Answer:
NPV = $-41,928.18
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator:
Cash flow in year 0 = $-300,000
Cash flow each year from year 1 to 10 = $42,000
I = 10%
NPV = $-41,928.18
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Answer:
b. $258,072
Explanation:
PERIOD CASH FLOW NET PRESENT VALUE
Year 1 $42,000 [tex]\frac{42000}{(1 + 0.10)^{1}} = 38181.82[/tex]
Year 2 $42,000 [tex]\frac{42000}{(1 + 0.10)^{2}} = 34710.74[/tex]
Year 3 $42,000 [tex]\frac{42000}{(1 + 0.10)^{3}} = 31555.22[/tex]
Year 4 $42,000 [tex]\frac{42000}{(1 + 0.10)^{4}} = 28686.57[/tex]
Year 5 $42,000 [tex]\frac{42000}{(1 + 0.10)^{5}} = 26078.70[/tex]
Year 6 $42,000 [tex]\frac{42000}{(1 + 0.10)^{6}} = 23707.91[/tex]
Year 7 $42,000 [tex]\frac{42000}{(1 + 0.10)^{7}} = 21552.64[/tex]
Year 8 $42,000 [tex]\frac{42000}{(1 + 0.10)^{8}} = 19593.31[/tex]
Year 9 $42,000 [tex]\frac{42000}{(1 + 0.10)^{9}} = 17812.10[/tex]
Year 10 $42,000 [tex]\frac{42000}{(1 + 0.10)^{10}} = 16192.82[/tex]
Total $258,071.83
