Question
An investment of $83 generates after-tax cash flows of $48,00 in Year 1, $74,00 in Year 2, and $135,00 in Year 3. The required rate
An investment of $83 generates after-tax cash flows of $48,00 in Year 1, $74,00 in Year 2, and $135,00 in Year 3. The required rate of return is 20 percent. The net present value is. The answer of 86.605 was not correct so where is the problem at.
Answer:
| 86 505 | ||
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| -Investment + (CF Y1)/1+.2) + (CF Y2)/1+.2)^2 + (CF Y3/1.2)^3 | ||
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Multinational Finance Evaluating Opportunities Costs and Risks of Operations
Authors: Kirt C. Butler
5th edition
1118270126, 978-1118285169, 1118285166, 978-1-119-2034, 978-1118270127
