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 include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.)

What is the NPV at a discount rate of 12 percent? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in 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 include the dollar sign ($). 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 (e.g., 32.16).)

What is the NPV at a discount rate of 32 percent? (Do not include the dollar sign ($). 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 (e.g., 32.16).)

Explanation / Answer

When Rate = 0% Column1 Column2 Column3 Year Cash Flows Discount Factor Discounted Cash Flows 0 -33000                        1.00                           (33,000.00) 1 13900                        1.00                             13,900.00 2 17800                        1.00                             17,800.00 3 11300                        1.00                             11,300.00 NPV                             10,000.00 When Rate = 12% Year Cash Flows Discount Factor Discounted Cash Flows 0 -33000                   1.0000                           (33,000.00) 1 13900                   0.8929                             12,410.71 2 17800                   0.7972                             14,190.05 3 11300                   0.7118                                8,043.12 NPV                                1,643.88 When Rate = 23% Year Cash Flows Discount Factor Discounted Cash Flows 0 -33000                   1.0000                           (33,000.00) 1 13900                   0.8130                             11,300.81 2 17800                   0.6610                             11,765.48 3 11300                   0.5374                                6,072.44 NPV                             (3,861.27) When Rate = 32% Year Cash Flows Discount Factor Discounted Cash Flows 0 -33000                   1.0000                           (33,000.00) 1 13900                   0.7576                             10,530.30 2 17800                   0.5739                             10,215.79 3 11300                   0.4348                                4,913.11 NPV                             (7,340.79)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

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