Question: Consider the following cash flow statement. The required fields are calculated. Calculate the Net present value of the cash flow if the interest rate is

 Consider the following cash flow statement. The required fields are calculated.

Consider the following cash flow statement. The required fields are calculated. Calculate the Net present value of the cash flow if the interest rate is 15%. 0 1 2. 3 4 5 50 50 50 2000 2000 100000 100000 50 2000 100000 50 2000 100000 2000 100000 Revenues: Unit Price Demand (units) Sales revenue Expenses: Unit variable cost Variable cost Fixed cost Depreciation Taxable Income Income taxes (40%) Net Income Depreciation Investment activities Investment Working capital Salvage Gains tax Net cash flow 15 30000 10000 17863 42137 16855 25282 17863 15 30000 10000 30613 29387 11755 17632 30613 15 30000 10000 21863 38137 15255 22882 21863 15 30000 10000 15613 44387 17755 26632 15613 15 30000 10000 5575 54425 21770 32655 5575 - 125000 50000 50000 40000 -2611 Select one: a. 130410 b. 21 1090 c. 108506 d. 100000 e. 8822

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 Accounting Questions!