Question
Christina hopes to open a Deli in 2015. The initial investment will be $85,000. She expects that that the Deli will generate the positive cash
Christina hopes to open a Deli in 2015. The initial investment will be $85,000. She expects that that the Deli will generate the positive cash flow as indicated below. If she can borrow money at 7% per year, what will be the Net Present Value? Use 7% as the discount rate.
| Year | Cash Flow |
| 2016 | $22,000 |
| 2017 | $24,000 |
| 2018 | $29,000 |
| 2019 | $30,000 |
| 2020 | $31,000 |
| 2021 | $27,000 |
| 2022 | $22,000 |
| 2023 | $15,000 |
| 2024 | $12,000 |
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Investments An Introduction
Authors: Herbert B. Mayo
12th edition
1305638417, 978-1337430937, 1337430935, 978-1305638419
