Question
Using excel, determine: The present value of a five (5) year project, with expected annual cash flows given below, assuming the cost of capital of
- Using excel, determine:
- The present value of a five (5) year project, with expected annual cash flows given below, assuming the cost of capital of 12.5% p.a. (1 Mark)
| Year | Cash flow |
| 1 | 75,600.00 |
| 2 | 58,800.00 |
| 3 | 50,400.00 |
| 4 | 42,000.00 |
| 5 | 36,500.00 |
ii. The future value of $ 12,200 received annually over a period of four (4) years, interest paid quarterly at the rate of 14% p.a.
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W Melicher, Edgar Norton
13th Edition
0470128925, 9780470128923
