Year Cash Flow 0 -$18000 1 10300 2 9200 3 5700 What is the NPV at a discount rat

Question

Year Cash Flow 0 -$18000 1 10300 2 9200 3 5700 What is the NPV at a discount rate of 30 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. What is the profitability index for the set of cash flows if the relevant discount rate is 15 percent? (Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., 32.161)) What is the profitability index for the set of cash flows if the relevant discount rate is 22 percent? (Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., 32.161))

Explanation / Answer

1. NPV= -33,500+14,500 +17,200 +11,900 = $101002.NPV= -33,500+14,500/1.09+17,200/1.09^2 +11,900/1.09^3= $3468.633.NPV= -33,500+14,500/1.19+17,200/1.19^2 +11,900/1.19^3= $-2107.4434.NPV= -33,500+14,500/1.29+17,200/1.29^2 +11,900/1.29^3= $-6380.35

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