Homework Answers
Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=3100/1.16+3100/1.16^2+3100/1.16^3+4400/1.16^4
=$9392.34
NPV=Present value of inflows-Present value of outflows
=9392.34-10400
=($1007.66)(Approx)(Negative).
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