Net Present value (NPV) of $83

label Business
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

An investment of $83 generates after-tax cash flows of $40.00 in Year 1, $74.00 in Year 2, and $131.00 in Year 3. The required rate of return is 20 percent. The net present value is?

Oct 15th, 2015

Thank you for the opportunity to help you with your question!

initial investment=$83

returns:y1=40

           y2=74

          y3=131

total returnsin three year=40+74+131=245

rate of returns=20% of 245=$49

npv=rate of return-initial investment=49-83=-34 ans

Please let me know if you need any clarification. I'm always happy to answer your questions.
Oct 15th, 2015

Thank you for the help.  I have three more if you could assist with?

Oct 15th, 2015

yeah..am waiting


Oct 15th, 2015

Can you see my other questions?

Oct 15th, 2015

let me check,you have already posted them?

Oct 15th, 2015

yes

Oct 15th, 2015

am bidding right now

Oct 15th, 2015

cool

Oct 15th, 2015

am having some issues with my internert connection pal..let me try and fix them an will get back to you..i can send you the fomulae though...

Oct 15th, 2015

ok

Oct 15th, 2015

it slugging down man...i hate when this happens


Oct 15th, 2015

yes, I know the feeling

Oct 15th, 2015

answer is137084369.66

Oct 16th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Oct 15th, 2015
...
Oct 15th, 2015
Sep 21st, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer