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Calculate the present value (NPV) of the following mixed stream of cash flows if the required discount rate is 10% per annum, interest is compounded
Calculate the present value (NPV) of the following mixed stream of cash flows if the required discount rate is 10% per annum, interest is compounded annually.
Year Cash flow
1 R20 000
2 R4 000
3 R600 000
4 -R80 000
5 R40 000
6 R8 000
(a) R446 988.05
(b) R491 686.86
(c) R592 000.00
(d) R577 613.08
(e) None of the above
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