Question
Change the cash flows for year 3 to $90 for L and $30 for S and keep all of the other values the same. 1.
Change the cash flows for year 3 to $90 for L and $30 for S and keep all of the other values the same.
1. Calculate the NPVL.
a. Use the formula.
b. Use Excel or financial calculator and show the setup.
2. Calculate the NPVS
a. Use a formula.
b. Use Excel or a financial calculator and show the setup.
3. Calculate the PV of L and S and use the same values calculated for NPV. Use a formula or Excel or a calculator.
Cash Flow Year L S ACF 0 -100 -100 0 10 70 -60 WN - 60 50 10 80 20 60Step by Step Solution
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
