Homework Answers
| Calculation of Net present value: | |||
| Time | Cashflow | PVF @10% | PV |
| - | -25,000 | 1.00 | -25,000.00 |
| 1.00 | 9,000 | 0.909 | 8,181.82 |
| 2.00 | 8,000 | 0.826 | 6,611.57 |
| 3.00 | 7,000 | 0.751 | 5,259.20 |
| 4.00 | 6,000 | 0.683 | 4,098.08 |
| 5.00 | 5,000 | 0.621 | 3,104.61 |
| 2,255.28 | |||
| Net present value is $2255.28 | |||
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1)
2)
3)
4)
5)
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