a.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=8000+9300+7800
=25100
NPV=Present value of inflows-Present value of outflows
=25100-$17300
=$7800
b.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=8000/1.1+9300/1.1^2+7800/1.1^3
=20818.93
NPV=Present value of inflows-Present value of outflows
20818.93-$17300
=$3518.93(Approx).
c.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=8000/1.22+9300/1.22^2+7800/1.22^3
=17101.21
NPV=Present value of inflows-Present value of outflows
=17101.21-$17300
=$(198.79)(Approx).(Negative).
d.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=8000/1.3+9300/1.3^2+7800/1.3^3
=15207.10
NPV=Present value of inflows-Present value of outflows
=15207.10-$17300
=($2092.9)(Approx).(Negative).
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