1. Calculate the Net Present Value(NPV) of the following cash flow stream if the required rate...
1. Calculate the Net Present Value(NPV) of the following cash flow stream if the required rate is 12%?
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash Flow | (230,000) | 60,000 | 60,000 | 60,000 | 60,000 | 60,000 |
Homework Answers
Given that the required return is 12%.
Net present value is the difference between the initial investment
and the present value of the future cash flows.
With the given cash flows, we can determine the net present value
using excel as follows:
Answer: Hence, the net present value is $11684.44
Add Answer to:
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1. Calculate the net present
value (NPV) for both projects, and determine which project should
be accepted based on NPV. Round both NPVs to the nearest
dollar.
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Please show all work. Thank you.
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1. Calculate the net present
value (NPV) for both projects, and determine which project should
be accepted based on NPV. Round both NPVs to the nearest
dollar.
2. Calculate the internal rate of return (IRR) for both
projects, and determine which project should be accepted based on
IRR.
3. Calculate the net present value (NPV) for both projects using
the crossover rate as your discount rate. Round both NPVs to the
nearest dollar.
Please show all work. Thank you.
Use...
What is the net present value (NPV) of a project that has the following cash flows? The required return is 10.0% Year 0 1 2 Cash Flow $ (5,000) $2,000 $ 2,000 $ 2,000 $3,000 $1,000 $1,000 3 4 5 6
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