Consider the following cash flows: $32,000 14,200 17,500 11,600 What is the NPV

Question

Consider the following cash flows: $32,000 14,200 17,500 11,600 What is the NPV at a discount Fate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole nu Net present value What is the NPV at a discount rate of 10 percent? (Do not round intermediate calculations and round your aniswer to 2 decimal places, e.g, 32.16.) Net present value $ What is the NPV at a discount rate of 20 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate caleulations and round your answer to 2 mber, e.g. 32.) decimal places, o.g.. 32.16) Net present value What is the NPV at a discount rate of 30 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calcuilations and round your answer to 2 decimal places, e.g. 32.16.) Net present value$

Explanation / Answer

Statement showing Cash flows Particulars Time PVf 0% Amount PV Cash Outflows                        -                        1.00            (32,000.00)            (32,000.00) PV of Cash outflows = PVCO            (32,000.00) Cash inflows                    1.00                 1.0000               14,200.00               14,200.00 Cash inflows                    2.00                 1.0000               17,500.00               17,500.00 Cash inflows                    3.00                 1.0000               11,600.00               11,600.00 PV of Cash Inflows =PVCI               43,300.00 NPV= PVCI - PVCO               11,300.00 Statement showing Cash flows Particulars Time PVf 10% Amount PV Cash Outflows                        -                        1.00            (32,000.00)            (32,000.00) PV of Cash outflows = PVCO            (32,000.00) Cash inflows                    1.00                 0.9091               14,200.00               12,909.09 Cash inflows                    2.00                 0.8264               17,500.00               14,462.81 Cash inflows                    3.00                 0.7513               11,600.00                 8,715.25 PV of Cash Inflows =PVCI               36,087.15 NPV= PVCI - PVCO                 4,087.15 Statement showing Cash flows Particulars Time PVf 20% Amount PV Cash Outflows                        -                        1.00            (32,000.00)            (32,000.00) PV of Cash outflows = PVCO            (32,000.00) Cash inflows                    1.00                 0.8333               14,200.00               11,833.33 Cash inflows                    2.00                 0.6944               17,500.00               12,152.78 Cash inflows                    3.00                 0.5787               11,600.00                 6,712.96 PV of Cash Inflows =PVCI               30,699.07 NPV= PVCI - PVCO               (1,300.93) Statement showing Cash flows Particulars Time PVf 30% Amount PV Cash Outflows                        -                        1.00            (32,000.00)            (32,000.00) PV of Cash outflows = PVCO            (32,000.00) Cash inflows                    1.00                 0.7692               14,200.00               10,923.08 Cash inflows                    2.00                 0.5917               17,500.00               10,355.03 Cash inflows                    3.00                 0.4552               11,600.00                 5,279.93 PV of Cash Inflows =PVCI               26,558.03 NPV= PVCI - PVCO               (5,441.97)

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