Question
Skyline Corp. will invest $300,000 in a project that will not begin to produce returns until the end of the 3rd year. From the end
Skyline Corp. will invest $300,000 in a project that will not begin to produce returns until the end of the 3rd year. From the end of the 3rd year until the end of the 12th year (10 periods), the annual cash flow will be $65,000.
a.Calculate the net present value if the cost of capital is 15 percent.
I am using the excel sheet to find the present value of an annuity:
rate:15%. # of periods: 10 PMT: 65000. FV:0
then I use the answer: -326219.96 to find the PV for the first two periods
rate:15%. # off periods: 2. PMT: 0. FV: -326219.96
The answer that I get is PV: 246,669.15. but the answer still wrong. What am I missing?
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