Question: Assuming discount rate = 15%. Calculate the net present value for the following cash flows. Year Cash flow 0 -100 1 20 2 50 3

Assuming discount rate = 15%.

Calculate the net present value for the following cash flows.

Year Cash flow
0 -100
1 20
2 50
3 80

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Assuming discount rate = 15%. Calculate the net present value for the following cash flows. Year Cash flow 0 -100 1 10 2 60 3 80 Option A: 25.31 Option B: 23.12 Option C: 24.06 Option D: 27.10

Q:

Assuming a 15% annual discount rate, what is the net present value of the following cash flows: Year 1: $450,560 Year 2: $15,653 Year 3: $10,966 Year 4: -$1,450 A. $415,110 B. $410,009 C. $402,110 D....

Q:

2026E 2027E 2028E 2029E 2023E 3,684 10396 796 2024E 4,045 10196 1096 2025E 4,258 9596 596 096 096 096 096 -100% na 244 Activision Blizzard (ATVI) 245 (SMillions, except where noted) 246 2019 2020E...

Q:

When I ask if you would proceed with a project based on an investment criteria, you MUST state the reason you would accept/reject the project BASED ON THAT RULE, even if you would reject/accept the...

Q:

CORRECTLY SET UP THE PROBLEM; SHOW ALL INTERMEDIATE ALGEBRAIC STEPS (IF ANY ARE REQUIRED), AND; SHOW ALL INTERMEDIATE CALCULATION(S) PRIOR TO YOUR FINAL ANSWER. ALL ANSWERS IN THE FORM OF A PERCENT...

Q:

7 you would accept reject the project BA roject for other reasons. 7. Initial investment = ($800,000) Cash flow in year 1 - $250,000 Cash flow in year 2-$365,000 Cash flow in year 3 = $555,000 The...

Q:

Question 6 Your grandparents would like to establish a trust fund that would pay annual payments to you and your heirs of $100,000 a year forever. How much do your parents need to deposit into this...

Q:

Using the NPV function of Excel, calculate the present value of the following cash flows: Year Cash flow 1 10,000 2 12,000 3 15,000 4 20,000 Discount rate is 8% p.a.

Q:

YO16_XL_GRADER_CASE5 - Coffee 1.1 Project Description: Chloe Jants is fulfilling her long-term dream of opening a coffee shop on a busy corner of her hometown. Her town is like many others in the...

Q:

1 Normal No Spac.. Heading Styles Paragraph Item 4 of 5 20 points) Your friend is trying to decide between making one of two possible investments, each with its own series of cash inflows and cash...

Q:

Delta Automotive Corporation has the following assets listed in its 12/31/11 trial balance: Required: 1. Determine the correct balance of cash and cash equivalents to be reported in the current asset...

Q:

A laser beam passes through a slit of width 1.0cm and is pointed at the Moon, which is approximately 380,000 km from the Earth. Assume the laser emits waves of wavelength 630nm (the red light of a He...

Q:

The potential exposure component of the credit equivalent amount of Off Balance Sheet ( OBS ) derivative items reflects Question 2 2 Answer a . the probability today of a counterparty contract...

Q:

Miyagi Manufacturing Inc. is moving to kanbans to support its telephone switching - board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed \ table [...

Q:

Check with the EEOCs website and compile a list of the biggest financial settlements this past year for retaliation claims. About how much was the average claim?

Q:

Why is it important for companies today to make their human resources into a competitive advantage? Explain how HR can contribute to doing this. What are some examples of employers that do this?

Q:

Based on the few facts that you have, what steps could Garden management have taken to protect itself from liability in this matter?