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To motivate her staff, Debra runs a few different PV scenarios to show how their additional effort could really pay off. Under average conditions, after
To motivate her staff, Debra runs a few different PV scenarios to show how their additional effort could really pay off. Under average conditions, aftertax annual net operating cash flows are $ Under a bit more optimistic but still possible conditions, aftertax annual net operating cash flows could be $ She tells her staff that if these higher cash flow amounts could be earned for consecutive years, a portion of that value could be used for employee perks ie celebratory trips paid for by the company She thinks she has their attention.
Using two different possible discount rates and calculate the range of NPVs for the average and optimistic options. Round present value factor calculations to decimal places, eg and final answers to decimal places eg Enter negative amounts using either a negative sign preceding the number eg or parentheses eg
Click here to view the factor table
tableAverage Cash Flows,Optimistic Cash FlowsNPV at $$
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