annual cash flow, -500,000 125,000 150,000 175,000 200,000 250,000 What is the NPV if the discount...
annual cash flow,
-500,000
125,000
150,000
175,000
200,000
250,000
What is the NPV if the discount rate is 8%?
Homework Answers
| Year | Cash flow | Discount factor | Present value | |
| a | b | c=1.08^-a | d=b*c | |
| 0 | $ -5,00,000 | 1.00000 | $ -5,00,000.00 | |
| 1 | $ 1,25,000 | 0.92593 | $ 1,15,740.74 | |
| 2 | $ 1,50,000 | 0.85734 | $ 1,28,600.82 | |
| 3 | $ 1,75,000 | 0.79383 | $ 1,38,920.64 | |
| 4 | $ 2,00,000 | 0.73503 | $ 1,47,005.97 | |
| 5 | $ 2,50,000 | 0.68058 | $ 1,70,145.80 | |
| NPV | $ 2,00,413.98 | |||
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