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Question Completion Status: QUESTION 9 1 points Save Brandon buys a piece of equipment for $15,000. He pays $5,000 for upgrades in year 1 and the equipment generates $2,000 in cash flow for year 1. In year 2 the equipment generates $8,000, year 3 it generates $4,000, but Brandon sells it for $6,000 but also pays a $500 commission. Assume a required rate of return of 8%, what is the NPV? ○ <3,378>. O 3,378. ○ <2,178>. 2,178. QUESTION 10 1 points
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Answer #1

1 Yearl Cash flow |PVF@8% Present value 2 OS 15,000) 1.000 (15,000) 3 1 S (3,000)0.9(2,778) 4 2 $8 53$ 9,500 0.794$ 7,541 8,0

1 Year l Cash flow | PVF@8%| Present value 2 0 31+A2-5000+2000C2/1.08 -C3 B3 15000 1 -C2*B2 4 1+A3 8000 5 -1+44|:400016000-50

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