Homework Answers
rate positively ..
| Computation of NPV | |||
| i | ii | iii | iv=ii*iii |
| year | Cash flow | PVIF @ 4% | present value |
| 0 | -5000 | 1.0000 | (5,000.00) |
| 1 | 1000 | 0.9615 | 961.54 |
| 2 | 1000 | 0.9246 | 924.56 |
| 3 | 2000 | 0.8890 | 1,777.99 |
| 4 | 2000 | 0.8548 | 1,709.61 |
| 373.70 | |||
| NPV = | 373.70 |
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