Initial Investment Annual Net Income Annual Cash Flow NPV Scenario A 2,000,000 545,100 681,205 Scenario B 2,000,000 426,995 -493,005 -3,777,184 Scenario C 2,000,000 1,644,385 2,564,385
Initial Investment | Annual Net Income | Annual Cash Flow | NPV | |
|---|---|---|---|---|
Scenario A | 2,000,000 | 545,100 | 681,205 | |
Scenario B | 2,000,000 | 426,995 | -493,005 | -3,777,184 |
Scenario C | 2,000,000 | 1,644,385 | 2,564,385 | 7,244,095 |
Expected interest rate: 12%
Forecasting period: 5 years
PV annuity factor: 3.6048
What is NPV for scenario A?Step by Step Solution
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Step: 1
To calculate the Net Present Value NPV for Scenario A you need to discount the annual cash ...
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Step: 2
Step: 3
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Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
