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of electricity for perpetuity. Use the information you have gathered to determine the following: a. The initial cash flow. b. The periodic cash flow for
of electricity for perpetuity. Use the information you have gathered to determine the following: a. The initial cash flow. b. The periodic cash flow for the first ten years. c. Terminal cash flow for year ten using a discount rate of 8%. d. The net present value (NPV) of the project cash flows using a discount rate of 8%. a. The initial cash flow is $ (Round to the nearest cent. Type a negative number to indicate a cash outflow and a positive number to indicate cash inflow.) b. Compute the periodic cash flow for the first ten years. The periodic cash flow in year 1 is s (Round to the nearest cent. Type a negative number to indicate a cash outflow and a positive number to indicate cash inflow.) The periodic cash flow in year 2 is s (Round to the nearest cent. Type a negative number to indicate a cash outflow and a positive number to indicate cash inflow.) The periodic cash flow in year 3 is $ (Round to the nearest cent. Type a negative number to indicate a cash outflow and a positive number to indicate cash inflow.) The periodic cash flow in year 4 is $ (Round to the nearest cent. Type a negative number to indicate a cash outflow and a positive number to indicate cash inflow.) The periodic cash flow in year 5 is S (Round to the nearest cent. Type a negative number to indicate a cash outflow and a positive number to indicate cash inflow.) The periodic cash flow in year 6 is $ (Round to the nearest cent. Type a negative number to indicate a cash outflow and a positive number to indicate cash inflow.) The periodic cash flow in year 7 is $ (Round to the nearest cent. Type a negative number to indicate a cash outflow and a positive number to indicate cash inflow.) The periodic cash flow in year 8 is s (Round to the nearest cent. Type a negative number to indicate a cash outflow and a positive number to indicate cash inflow.) The periodic cash flow in year 9 is $ (Round to the nearest cent. Type a negative number to indicate a cash outflow and a positive number to indicate cash inflow.) The periodic cash flow in year 10 is g (Round to the nearest cent. Type a negative number to indicate a cash outflow and a positive number to indicate cash inflow.) d. The NPV of the project cash flows using a discount rate of 8% is $. (Round to the nearest cent.)
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