Question: 1.) CF1 = 75 CF2 = 75 CF3 = 75 d = 15% FIND: Present Value (PV) 2.) CF = 100 g = 0 d

1.) CF1 = 75 CF2 = 75 CF3 = 75 d = 15%

FIND: Present Value (PV)

2.) CF = 100 g = 0 d = 20%

Assume the Cash Flow is annual and perpetual and FIND: PV

3.) CF0 = -100 (this is the investment)

CF1 = 30 CF2 = 50 CF3 = 60 CF4 = 90 WACC = 12%

FIND: Payback in Years

4.) Based upon the information in #3, FIND: Net Present Value (NPV)

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