Homework Answers
Present worth of receipt = (0/1.15^0)+(6000/1.15^1)+(5000/1.15^2)+(5000/1.15^3)+(12000/1.15^4)= 19146.73
Present worth of Disbursements = (20000/1.15^0)-(0/1.15^1)-(4000/1.15^2)-(0/1.15^3)-(1000/1.15^4) = 23596.33
NPV = 19146.73 - 23596.33 = -4449.6
Net present value is negative, so the venture is not profitable
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The following table shows the receipts and disbursements for a given venture. Determine the present worth...
The following table shows the receipts and disbursements for a given venture. Determine the present worth...
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