Consider the following cash flows: What is the NPV at a discount rate of zero pe

Question

Consider the following cash flows: What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations.) What is the NPV at a discount rate of 12 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) What is the NPV at a discount rate of 23 percent? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign.Round your answer to 2 decimal places (e.g., 32.16).) What is the NPV at a discount rate of 32 percent? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16).)

Explanation / Answer

Statement showing Cash flows Particulars Time PVf@0% Amount PV Cash Outflows                  -                1.00         (33,000.00)         (33,000.00) PV of Cash outflows = PVCO         (33,000.00) Cash inflows              1.00          1.0000            14,400.00            14,400.00 Cash inflows              2.00          1.0000            17,300.00            17,300.00 Cash inflows              3.00          1.0000            11,800.00            11,800.00 PV of Cash Inflows =PVCI            43,500.00 NPV = PVCI - PVCO            10,500.00 Statement showing Cash flows Particulars Time PVf@12% Amount PV Cash Outflows                  -                1.00         (33,000.00)         (33,000.00) PV of Cash outflows = PVCO         (33,000.00) Cash inflows              1.00          0.8929            14,400.00            12,857.14 Cash inflows              2.00          0.7972            17,300.00            13,791.45 Cash inflows              3.00          0.7118            11,800.00              8,399.01 PV of Cash Inflows =PVCI            35,047.60 NPV = PVCI - PVCO              2,047.60 Statement showing Cash flows Particulars Time PVf@23% Amount PV Cash Outflows                  -                1.00         (33,000.00)         (33,000.00) PV of Cash outflows = PVCO         (33,000.00) Cash inflows              1.00          0.8130            14,400.00            11,707.32 Cash inflows              2.00          0.6610            17,300.00            11,434.99 Cash inflows              3.00          0.5374            11,800.00              6,341.13 PV of Cash Inflows =PVCI            29,483.44 NPV = PVCI - PVCO            (3,516.56) Statement showing Cash flows Particulars Time PVf@32% Amount PV Cash Outflows                  -                1.00         (33,000.00)         (33,000.00) PV of Cash outflows = PVCO         (33,000.00) Cash inflows              1.00          0.7576            14,400.00            10,909.09 Cash inflows              2.00          0.5739            17,300.00              9,928.83 Cash inflows              3.00          0.4348            11,800.00              5,130.51 PV of Cash Inflows =PVCI            25,968.43 NPV = PVCI - PVCO            (7,031.57)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.