Consider the following cash flows: Year Cash Flow 0 -$33,500 1 14,500 2 17,200 3

Question

Consider the following cash flows: Year Cash Flow 0 -$33,500 1 14,500 2 17,200 3 11,900 Requirement 1: What is the NPV at a discount rate of zero percent? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.) Net present value $??? Requirement 2: What is the NPV at a discount rate of 9 percent? Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.Round your answer to 2 decimal places Net present value $??? Requirement 3: What is the NPV at a discount rate of 19 percent? Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Negative amount should be indicated by a minus sign.Round your answer to 2 decimal places Net present value $??? Requirement 4: What is the NPV at a discount rate of 29 percent? Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Negative amount should be indicated by a minus sign.Round your answer to 2 decimal places. Net present value $???

Explanation / Answer

1. NPV= -33,500+14,500 +17,200 +11,900 = $10100 2.NPV= -33,500+14,500/1.09+17,200/1.09^2 +11,900/1.09^3= $3468.63 3.NPV= -33,500+14,500/1.19+17,200/1.19^2 +11,900/1.19^3= $-2107.443 4.NPV= -33,500+14,500/1.29+17,200/1.29^2 +11,900/1.29^3= $-6380.35

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