Homework Answers
NPV = PV OF ALL CASH FLOWS - INVESTMENT
NPV = [3 X PVIF @12%, 2 YEARS + 7 X PVIF@12%, 4 YEARS] - [5]
NPV = [3 X (1/(1+0.12)^2) + 7 X (1/(1+0.12)^4)] - [5]
NPV = [ 3 X 0.7972 + 7 X 0.6355] - [5]
NPV = 6.8401 - 5
NPV = 1.8401
NPV = 1.84
ANSWER : (b) : 1.84 (Thumbs up please)
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