Answer:
NPV= 5,904.64
Explanation:
Giving the following information:
Discount rate= 9 percent
Year 0 : -$42,398
Year 1: $18,201
Year 2: $21,219
Year 3: $17,800
To calculate the NPV, we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Year 1: 18,201/1.09= 16,698.16
Year 2: 21,219/1.09^2= 17,859.61
Year 3: 17,800/1.09^3= 13,744.87
NPV= -42,398 + 48,302.64
NPV= 5,904.64
