Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I am still confused with PVIFA is (1 - (1 + r)^-n) / r and this calculation: Net present value = Present value of inflows

I am still confused with PVIFA is (1 - (1 + r)^-n) / r and this calculation: Net present value = Present value of inflows - Present value of outflows = ($25,000 * PVIFA(10%, 5 years)) - $75,000 = ($25,000 * 3.79079) - $75,000 = $94,769.75 - $75,000 = $19,769.75

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: John J. Wild, Ken W. Shaw

2010 Edition

9789813155497, 73379581, 9813155493, 978-0073379586

More Books

Students also viewed these Accounting questions