Homework Answers
| PERIOD | Cash flow | PV factor 11% | Present Value |
| 0 | -67000 | 1 | -67000 |
| 1 | 7000 | 0.900900901 | 6306.306 |
| 2 | 22000 | 0.811622433 | 17855.69 |
| 3 | 25000 | 0.731191381 | 18279.78 |
| 4 | 80000 | 0.658730974 | 52698.48 |
| NPV | 28140.26 | ||
Since NPV is positive project should be accepted
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Question 5 1 pts (5) Refer to the Capital Budgeting Narrative. Assume that the firm has...
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