Question: Net Present Value (NPV) - show your work, set up each problem with a cash flow series and/or with the formula 1. Calculate the NPV
Net Present Value (NPV) - show your work, set up each problem with a cash flow series and/or with the formula 1. Calculate the NPV of a machine which is bought for $5,000, sold at the end of year 5 for $2,500, and produces the following cash flows: year 1] +5700; year 2)+5600; year 31 +$500; year 4)+$400; year 5)+300, assume the cost of capital is 6.6. 2. Calculate the NPV of a machine which is bought for $10,000, sold at the end of year 5 for $3,500, and produces the following cash flows: year 1) +$300; year 2) +5600; year 3) +$1,200; year 4)+$2,400; year 5)+$4,800, assume the cost of capital is 5.8%. 3. Calculate the NPV of a machine which is bought for $6,000, sold at the end of year 5 for $2,000, and produces the following cash flows: year 1)+$2,000; year 21+$1,750; year 3 ) +$1,500; year 4)+$1,000; year 5)+$500, assume the cost of capital is 8%
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