The following table shows the receipts and disbursements for a given venture. Determine the present worth...

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The following table shows the receipts and disbursements for a given venture. Determine the present worth of the receipts and

business accounting

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Answer 1

Answer #1

Year	Receipts	PV of receipt @ 15%	Disbursement	PV of Disbursement @ 15%
0	0	0	20,000	20,000
1	6,000	5,217.39	0	0
2	5,000	3,780.72	4,000	3,024.57
3	5,000	3287.58	0	0
4	12,000	6861.04	1,000	571.75
Total		19,146.73		23,596.32

NPV= 19,146.73 – 23,596.32 = -4,449.59

As NPV is negative, venture is not profitable.

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Answer 2

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