Homework Answers
Net present value is calculated using a financial calculator by inputting the below:
- Press the CF button.
- CF0= -$50,000. It is entered with a negative sign since it is a cash outflow.
- Cash flow for each year should be entered.
- Press Enter and down arrow after inputting each cash flow.
- After entering the last cash flow cash flow, press the NPV button and enter the weighted average cost of capital of 13%.
- Press enter after that. Press the down arrow and CPT buttons to get the net present value.
The net present value of cash flows is $11,579.86.
In case of any query, kindly comment on the solution.
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