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2. You are evaluating a purchase using the net present value method. Using an interest rate of 3%, find the NPV for this asset. Based
2. You are evaluating a purchase using the net present value method. Using an interest rate of 3%, find the NPV for this asset. Based on this, should you buy the asset or not? Justify your answer.
PROBLEM 2 | |
Inputs | |
Interest rate | |
0 | |
1 | |
2 | |
3 | |
4 | |
Outputs | |
NPV | |
Invest? | |
Justification |
0 | (112,000) |
1 | 26,000 |
2 | 30,000 |
3 | 34,000 |
4 | 38,000 |
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