Homework Answers
ANSWER:
| Year | cash flows | PVF | Discounted cash flows |
|---|---|---|---|
| 0 | -$749000 | PVF(16,0) = 1 | -$749000 |
| 1 | -$48500 | PVF(16%,1) = 0.86207 | -$41810.40 |
| 2 | $354000 | PVF(16%,2) = 0.74316 | $263078.64 |
| 3 | $354000 | PVF(16%,3) = 0.64066 | $226793.64 |
| 4 | $354000 | PVF(16%,4) = 0.55229 | $195510.66 |
| NET PRESENT VALUE = | -$105427.46 |
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