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I need some help with this problem. Not sure if I am calculating correctly. Thank you The following data have been gathered for a capital
I need some help with this problem. Not sure if I am calculating correctly. Thank you
The following data have been gathered for a capital investment decision. Cash inflows: year 1 year 2 year 3 year 4 year 5 50,000 60,000 40,000 50,000 40,000 (the numbers in ( ) are what someone helped me with but they did not seem correct for some reason) 1sr Year 2nd Year 3rd Year Present value= Present value= Present value= Present value= 50000/(1+0.14)*1 60000/(1+0.14)*2 40000/(1+0.14)*3 50000/(1+0.14)*4 =26315.80 (46168.05 ) =11695.91 (26998.86) =10964.91 (29604.01) 43859.65 4th Year 5th Year Present value= 40000/(1+0.14) *5 =7017.54(20774.75) b. What would have been the present value of the cash flows if they were received In equal Installments over the five-year period at the same discount rate? (Assume the total cash inflows remain the same.) 1st year 2nd year 4th year 5th year 3rd yearStep by Step Solution
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