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go over the formula step by step please 9. Alice wants to buy some new equipment for her business. She is considering a machine which
go over the formula step by step please
9. Alice wants to buy some new equipment for her business. She is considering a machine which will cost $18,000 and have a useful life of six years. The following table shows estimates of the annual cash flow. 10 Cash Flow $15,000 20,000 28,000 CODE OM HOY Probability 0.25 0.60 0.15 2 a) Find the expected cash flow. Note this is the cash flow that will be estimated to occur at the 3'2 end of each of the six years. Find the expected NPV if the cost of capital is 8% Step by Step Solution
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