1. Time Cash Flows

0 -10,000

1 3,000

2 4000

3 4000

4 3000

If the cost of capital K is 10% what is the NPV Equal to?

a. 3250, b. 1087 c. 2500 d. 2785

2.

1. Time Cash Flows

0 -10,000

1 3,000

2 4000

3 4000

4 3000

if the cost of capital K increase from 10% to 12% by what percentage will the NPV change?

a. -23% b. -57% c. +24% d. +21%

3.

1. Time Cash Flows

0 -10,000

1 3,000

2 4000

3 4000

4 3000

if the cost of capital K is 10% and the initial investment of 10,000 increase to 20,000 what will be the NPV

a. -8912 b. 2930 c. 7050 d. -2930