Question
Pipette Medical Services is considering an investment of $200,000. Assume the discount rate is 18%. Data related to the cash inflows are as follows: Year
Pipette Medical Services is considering an investment of $200,000. Assume the discount rate is 18%. Data related to the cash inflows are as follows:
| Year | Cash Inflows |
| 1 | $100,000 |
| 2 | 92,000 |
| 3 | 120,000 |
| 4 | 160,000 |
| 5 | 100,000 |
Using a spreadsheet or financial calculator, determine the net present value for the investment. The investment's net present value is:
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Auditing and Assurance services an integrated approach
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
16th edition
978-0134075754, 134075757, 134065824, 978-0134065823
