Question: Given the four cash flow streams beginning in year 1 which is the best option if NPV is your test? Assume a discount rate of
Given the four cash flow streams beginning in year 1 which is the best option if NPV is your test? Assume a discount rate of 6 for all cases. (Hint: you may not need to do a calculation if you consider the timing of cash flows) Option 1: 100,000,4000,4000,4000,4000,200,000 Option 3: 100,000,4000,4000,4000,4000,210,000 Option 2: 90,000,4000,4000,4000,4000,210,000 Option 4: 100,000,4000,4000,4000,4000,180,000 Option 5: 110,000,3000,3000,3000,3000,180,000
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