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For an investment with following cash flow, calculate the NPV, Benefit Cost Ratio, and Present Value Ratio at minimum discount rate of 12%. And conclude
For an investment with following cash flow, calculate the NPV, Benefit Cost Ratio, and Present Value Ratio at minimum discount rate of 12%. And conclude if this is a an economically satisfactory investment. Please show your work.
C=4,000 | C=3,000 | C=2,000 | I=2,800 | I=3,200 | I=3,600 | I=3,800 | L=$4,000 |
0 | 1 | 2 | 3 | 4 | 5 | 6 |
C: Cost, I:Income, L: Salvage value
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