NPV = PV of cash Inflows - PV of Cash Outflows
Part A: NPV @0%
Year | CF | PVF @0% | Disc CF |
0 | $ -13,900.00 | 1.0000 | $ -13,900.00 |
1 | $ 6,400.00 | 1.0000 | $ 6,400.00 |
2 | $ 8,700.00 | 1.0000 | $ 8,700.00 |
3 | $ 5,900.00 | 1.0000 | $ 5,900.00 |
NPV | $ 7,100.00 |
Part B: NPV @ 10%
Year | CF | PVF @10% | Disc CF |
0 | $ -13,900.00 | 1.0000 | $ -13,900.00 |
1 | $ 6,400.00 | 0.9091 | $ 5,818.18 |
2 | $ 8,700.00 | 0.8264 | $ 7,190.08 |
3 | $ 5,900.00 | 0.7513 | $ 4,432.76 |
NPV | $ 3,541.02 |
Part C: NPV @ 20%
Year | CF | PVF @20% | Disc CF |
0 | $ -13,900.00 | 1.0000 | $ -13,900.00 |
1 | $ 6,400.00 | 0.8333 | $ 5,333.33 |
2 | $ 8,700.00 | 0.6944 | $ 6,041.67 |
3 | $ 5,900.00 | 0.5787 | $ 3,414.35 |
NPV | $ 889.35 |
Part D: NPV @ 30%
Year | CF | PVF @30% | Disc CF |
0 | $ -13,900.00 | 1.0000 | $ -13,900.00 |
1 | $ 6,400.00 | 0.7692 | $ 4,923.08 |
2 | $ 8,700.00 | 0.5917 | $ 5,147.93 |
3 | $ 5,900.00 | 0.4552 | $ 2,685.48 |
NPV | $ -1,143.51 |
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