Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume that the firm invests $100,000 today to get $25,000 at Year 1,$35,000 at Year 2,$45,000 at Year 3,$50,000 at Year 4,$55,000 at Year 5
Assume that the firm invests $100,000 today to get $25,000 at Year 1,$35,000 at Year 2,$45,000 at Year 3,$50,000 at Year 4,$55,000 at Year 5 , and $45,000 at Year 6 . What's the Net Present Value of this investment? Assume the interest(discount) rate of 10.2%. $41,119.23 $78,582.71 $78,003.47 $28,582.71 Question 5 1 pts Same facts as above: how would your answer change if the cash inflows increase by 15% and the discount rate decreases to 9.6% ? NOTE: The initial investment of $100,000 remains the same. $104,703.99$108,749.26$24,326.35$98,235.26 Question 6 1 pts Same facts as above: how would your answer change if the cash inflows decrease by 16% and the discount rate increases to 11.5% ? $43,404.82 $42,235.43
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started