Homework Answers
Ans C. +$ 2464.65
| Year | Project Cash Flows (i) | DF@ 14% | DF@ 14% (ii) | PV of Project ( (i) * (ii) ) |
| 0 | -25000 | 1 | 1 | (25,000.00) |
| 1 | 8000 | 1/((1+14%)^1) | 0.877 | 7,017.54 |
| 2 | 8000 | 1/((1+14%)^2) | 0.769 | 6,155.74 |
| 3 | 8000 | 1/((1+14%)^3) | 0.675 | 5,399.77 |
| 4 | 8000 | 1/((1+14%)^4) | 0.592 | 4,736.64 |
| 5 | 8000 | 1/((1+14%)^5) | 0.519 | 4,154.95 |
| NPV | 2,464.65 | |||
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