What is the net present value of the following set of cash flows at a discount rate of 5 percent: Year 0 = -$62,000; Year 1 = $16,500; Year 2 = $23,800; Year 3 = $27,100 and Year 4 = $23,300?
The cashflows are:
C0 = -$62000
C1 = $16500
C2 = $23800
C3 = $27100
C4 = $23300
Discount rate = r = 5%
NPV is the present value of all the cash flows. NPV is calculated using the formula:
NPV = C0 + C1/(1+r)1 + C2/(1+r)2 + C3/(1+r)3 + C4/(1+r)4
NPV = -62000 + 16500/(1+5%)1 + 23800/(1+5%)2 + 27100/(1+5%)3 + 23300/(1+5%)4 = -62000 + 16500/1.051 + 23800/1.052 + 27100/1.053 + 23300/1.054 = -62000 + 15714.2857142857 + 21587.3015873016 + 23409.998920203 + 19168.9676626508 = 17880.5538844411 ~ 17880.55 (Rounded to two decimals)
Answer -> NPV = $17880.55
What is the net present value of the following set of cash flows at a discount...
What is the net present value of the following set of cash flows at a discount rate of 6 percent? At 12 percent? Year Cash Flow 0 −$ 47,500 1 12,500 2 18,500 3 21,500 4 22,000
What is the net present value of a project with the following cash flows if the discount rate is 12 percent? Year Cash flow 0 -$27,500 1 14,800 2 19,400 3 5,200
What is the present value of the following set of cash flows at a 10% discount rate? ered f1.00 cion Year Cash Flow 1 OMR800 2 -OMR800 3 OMR800 4 -OMR800 Select one: a. OMR 0.00 b. OMR 120.76 COMR 173.31 d. OMR 379.41 e OMR3,312.13
What is the net present value of a project with the following cash flows if the discount rate is 12 percent? Year Cash flow 0 −$ 27,500 1 14,800 2 19,400 3 5,200 Multiple Choice $4,881.10 $11,900.00 $4,358.13 $11,035.24 $8,129.06
If the discount rate is 9
percent what is the net present value of a project with the
following cash flows? Year Cash Flow 0 −$ 55,000 1 21,500 2 24,750
3 29,450
If the discount rate is 9 percent what is the net present value of a project with the following cash flows? Year Cash Flow -$55,000 21,500 24,750 29,450 WN
18) NET PRESENT VALUE (BASIC)What is the net present value of a project with the following cash flows if the discount rate is 14 percent?
1. What is the net present value of the following set of cash flows at a required rate of 7 percent? At 20 percent? Time period Cash flow 1 -$17,000 2 4,500 3 8,700 4 11,900
Buestion . .. What is the present value of the following set of cash flows, discounted at 100% per year? Year CI 1 $10 522 4 565 5 b. What is the present of the following set of cash flows, discounted at 100% per year? Year CF 1 558 2 5-46 531 4 522 590 5 510 c. Each set contains the same cash flow (510, 522 54 546 558)so why is the present value different? .. What is the...
What is the net present value of a project with the following cash flows and a required return of 11 percent? Year Cash Flow 0 –$30,400 1 16,800 2 21,530 3 4,000 Multiple Choice $5,455.86 $-5,455.86 $5,134.13 $3,402.45 -$5,134.13
What is the present value of the following set of end of the year cash flows: Year 1: $450; Year 2: $600; and then an eight year annuity of $400 per year if the discount rate is 9%? Group of answer choices $2,214 $2,462 $2,781 $3,112 $3,244