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Referring to our cash flow statement earlier, find out NPV if our current month is January and interest rate is 1% compounded monthly January February
Referring to our cash flow statement earlier, find out NPV if our current month is January and interest rate is 1% compounded monthly January February $10,100 $6,700 March $20,100 April $10,600 May -$3,400 June $2,300 Cash Flow | Subcontractor Selection PV = (1 + i)" PV = _FV A General Contractor (GC) obtained bids from three local subcontractors (SC) for a job. Given that GC uses 12% per year interest rate, compounded monthly, which SC should GC select? I Subcontractor Price A $40,000 Payment Schedule 50% payable now 50% payable in 1 year 30% payable in 6 months 70% payable in 1 year 75% payable now 25% payable in 1 year $42,000 C $39,000
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