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After plugging the values into the Financial Calculator, am I suppose to set the I-value to 8% before calculating for NPV? Thanks! Hubert purchased a
After plugging the values into the Financial Calculator, am I suppose to set the I-value to 8% before calculating for NPV?
Thanks!
Hubert purchased a new copy machine for his business. The copy machine was purchased for $14,500 and is expected to generate the following cash flows for the next four years: Year 1:$6000, Year 2:7000, Year 3: 1600, Year 4: 500. Assume the copy machine can be sold for $1300 at the end of year 4. Hubert's required rate of return is 8%. (-) $14500 CF, Year 0 (+) $6000 CF, Year 1 (+) $7000 CF, Year 2 (+) $1600 CF, Year 3 (+) $1800 CF, Year 4 ($500+$1300)| a. What is the net present value? NPV = b. What is the internal rate of return? IRR =Step by Step Solution
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