Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
a.Present value of inflows=(8100+9400+7900)=$25400
NPV=Present value of inflows-Present value of outflows
=(25400-17400)=$8000.
b.Present value of inflows=8100/1.11+9400/1.11^2+7900/1.11^3
=$20702.96
NPV=$20702.96-$17400
=$3302.96
c.Present value of inflows=8100/1.23+9400/1.23^2+7900/1.23^3
=$17043.93
NPV=$17043.93-$17400
=$(356.07)(Negative)
d..Present value of inflows=8100/1.29+9400/1.29^2+7900/1.29^3
=$15607.85
NPV=$15607.85-$17400
=$(1792.15)(NEGATIVE)(APPROX).
A project has the following cash flows Year Cash Flow 0 $17,400 8,100 9,400 7,900 2...
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