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andreapgomezr
21.01.2021 •
Business
Please calculate the Net Present Value for the following scenario:
Today End of Year 1 End of Year 2 End of Year 3 End of Year 4
Outflow (investment) 2000
Inflow (return) 300 350 400 450
Discount rate-14%
Annual compounding at the end of the year (do not use your calculator's annuity due function)
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Ответ:
The computation of the net present value is:
-$931.35The computation of the net present value is given below:
Year Amount Discount factor at 14% Present value
PV of Cash Inflows = $1,068.651 $300 0.877 $263.1
2 $350 0.769 $269.15
3 $400 0.675 $270
4 $450 0 .592 $266.4
Initial investment =$2,000
Net Present Value = The present value of Cash inflows - initial investment
Net Present Value = $1,068.65 - $2,000
Net Present Value = -$931.35
The Net Present Value for the following scenario will be -$931.35.
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Ответ:
-$931.35
Explanation:
The computation of the net present value is given below:
Before that the present value is
Year Amount Discount factor at 14% Present value
1 $300 .877 $263.1
2 $350 .769 $269.15
3 $400 .675 $270
4 $450 .592 $266.4
PV of Cash Inflows = $1,068.65
And, the initial investment is $2,000
So, the net present value is
= The present value of Cash inflows - initial investment
= $1,068.65 - $2,000
= -$931.35
Ответ: