Homework Answers
NPW of all cash flows = -220000 * (P/A, 18%,3) + 50000 * (P/F, 18%.4) + 250000 * (P/A, 18%,5)*(P/F, 18%,4)
= -220000 * 2.174273 + 50000 * 0.515789 + 250000 * 3.127171 * 0.515789
= -49310.61
As NPW is negative, we should not invest in this company
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