Brandon buys a piece of equipment for $15,000. He pays $5,000 for upgrades in year 1 and the equipment generates $2,000 in cash flow for year 1. In year 2 the equipment generates $8,000, year 3 it generates $4,000, but Brandon sells it for $6,000 but also pays a $500 commission. Brandon’s required rate of return is 8%. 

What is the NPV?

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of this investment we need to discount all the cash flows to ... View the full answer