Question

Consider the following cash flows: Year Cash Flow 32,500 13,800 17,900 11.200 دبہ بن a. What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the NPV at a discount rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the NPV at a discount rate of 21 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the NPV at a discount rate of 31 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) $ 10.400 2.649 82 S Net present value Net present value Net present value Net presente walue -2 546 99 S -6,533.02

Answer 1

rate positively ..

you had made typo error i guess.. It should be 6553. 02 instead of 6533.02

Year	Cash flow	PVIF @ 11%	PVIF @ 21%	PVIF @ 31%	Present value @ 11%	Present value @ 21%	Present value @ 31%
0	-32500	1	1	1	(32,500.00)	(32,500.00)	(32,500.00)
1	13800	0.9009009	0.8264463	0.7633588	12,432.43	11,404.96	10,534.35
2	17900	0.8116224	0.6830135	0.5827166	14,528.04	12,225.94	10,430.63
3	11200	0.7311914	0.5644739	0.4448219	8,189.34	6,322.11	4,982.00
	10400				2,649.82	(2,546.99)	(6,553.02)
Ans a)	10400
Ans b)	2,649.82
Ans c)	(2,546.99)
Ans d)	(6,553.02)