Homework Answers
| CACLULATION OF THE PRESENT VALUE OF PROJECT X | ||||
| Years | Cash Flow | PVF of $ 1 @ 6% (B) | Present Value (A XB) | |
| 0 | -1,00,000.00 | 1.00000 | $ -1,00,000.00 | |
| 1 | $ 23,000.00 | 0.94340 | $ 21,698.11 | |
| 2 | $ 23,000.00 | 0.89000 | $ 20,469.92 | |
| 3 | $ 23,000.00 | 0.83962 | $ 19,311.24 | |
| 4 | $ 23,000.00 | 0.79209 | $ 18,218.15 | |
| 5 | $ 23,000.00 | 0.74726 | $ 17,186.94 | |
| 5 | $ 6,000.00 | 0.74726 | $ 4,483.55 | |
| Net Present Value | $ 1,367.92 | |||
| Net Present Value (Round off) | $ 1,368 | |||
| Answer = Net present of project X is closed = Option 3 = $ 1,358 | ||||
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