Question

White Rock Services Inc. has an opportunity to make an investment with the following projected cash flows. Year Cash Flow 0 ​$1600000, - 13887000, 2225025

a. Calculate the NPV at the following discount rates and plot an NPV profile for this​ investment: 0​%, 5​%, 7.5​%, 10​%, 15 %​, 20​%, 22.5​%, 25​%, 30​%.,

Answer 1

rate positively ..

Note: Are you sure you have given correct details of the cash flow.. I believe its not correct.. Below is the answer based on the given data..

uv@smus. tue propers tapecabo uer vas Бабин Гук Time Expected net cash flows Cash flow 1,600,000 (13,887,000) 2,225,025 Ans a). Based on below chart correct answer is option a) NPV profile 0.1 0.2 0.3 0.4 0.00% 5.00% 7.50% 10.00% 15.00% 20.00% 22.50% 25.00% 30.00% NPV profile $2,000,000.00 $0.00 ($2,000,000.00) ($4,000,000.00) ($6,000,000.00) ($8,000,000.00) ($10,000,000.00) ($12,000,000.00) (10,061,975.00) (9,607,551.02) (9,392,752.84) (9,185,681.82) (8,793,213.61) (8,427,343.75) (8,253,594.34) (8,085,584.00) (7,765,724.85)

C D E F G H соцзаспиртушаат сите шешенә. Тие госпо слесоса гост Time Expected net cash flows Cash flow 1600000 -13887000 2225025 Ans a). Based on below chart correct answer is option a) 18 NPV profile 0.05 0.15 0.3 0.35 21 0.05 22 0.075 23 0.1 24 0.15 25 0.2 26 0.225 NPV profile $2,000,000.00 $0.00 ($2,000,000.00) ($4,000,000.00) ($6,000,000.00) ($8,000,000.00) ($10,000,000.00) ($12,000,000.00) =NPV(0,C12:C14)+C11 =NPV(0.05,C12:C14)+C11 =NPV(0.075, C12:C14)+C11 =NPV(0.1,C12:C14)+C11 =NPV(0.15, C12:C14)+C11 =NPV(0.2,C12:C14)+C11 =NPV(0.225, C12:C14)+C11 =NPV(0.25, C12:C14)+C11 =NPV(0.3,C12:C14)+C11 27 0.25 28 0.3