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I would like for you to solve for the Net Present Value. Thank you Debby's Dance Studios is considering the purchase of new sound equipment
I would like for you to solve for the Net Present Value. Thank you
Debby's Dance Studios is considering the purchase of new sound equipment that will enhance the popularity of its aerobics dancing The equipment will cost $24.500. Debby is not sure how many members the new equipment will attract, but she estimates that her increased annual cash flows for each of the next five years will have the following probability distribution. Debby's cost of capital is 15 percent Use Appendix D for an approximate answer but calculate your final answers using the formula and financial calculator methods Cash Flow 54,50 5,50 5.170 Probability 2.2 a. What is the expected value of the cash Tow? The value you compute will apply to each of the five years Answer is complete and correct. Expected cash flow 3 b. What is the expected not procent valo? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.) Answer is not complete. Net presentoue c. Show Debby ouy the new coment? Yes NOStep by Step Solution
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