Question

P9-11 Calculating NPV [LO1] For the following set of cash flows,    Year Cash Flow 0...

P9-11 Calculating NPV [LO1]

For the following set of cash flows,

  

Year Cash Flow
0 –$7,000           
1 6,900           
2 5,200           
3 5,500           
Required:
(a) What is the NPV at a discount rate of 0 percent?
  
(b) What is the NPV at a discount rate of 13 percent?
  
(c) What is the NPV at a discount rate of 20 percent?
(d) What is the NPV at a discount rate of 25 percent?
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Answer #1

В 1 Year Cash Flow 2 (7,000) 0 1 6,900 4 2 5,200 5,500 6 7 NPV (0%) 8 NPV (13%) 9 NPV (20%) 10 NPV (25%) 10,600.00 6,990.33 5А В 1 Year Cash Flow 2 0 -7000 3 1 6900 4 2 5200 5 3 5500 6 7 NPV (0%) 8 NPV (13%) 9 NPV (20%) 10 NPV (25%) =NPV(0%,$B$3:$B$5

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