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QS 24-12 Net present value, with salvage value Lo P3 Assume that instead of a zero salvage value, as shown above, the investm
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Answer #1
Cash Flow Present value of $1 @ 6% Present value
Year 1 $140,000 0.943396 $132,075.47
Year 2 $96,000 0.898473 $86,253.37
Year 3 $121,000 0.847616 $102,561.495
Totals $320,890.34
Amount Invested ($250,000)
Net Present Value $70,890.34
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