Net Present value (NPV) of $83

Business & Finance
Tutor: None Selected Time limit: 1 Day

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

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Oct 15th, 2015

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Oct 15th, 2015

let me check,you have already posted them?

Oct 15th, 2015

yes

Oct 15th, 2015

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Oct 15th, 2015

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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

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Oct 15th, 2015

yes, I know the feeling

Oct 15th, 2015

answer is137084369.66

Oct 16th, 2015

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