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Year 1 Year 2 Year 3 Year 4 Year 5 12% 0.89286 0.79719 0.71178 0.63552 0.56743 Year 6 Year 7 Year 8 0.50663 0.45235 0.40388

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Year 1 Year 2 Year 3 Year 4 Year 5 12% 0.89286 0.79719 0.71178 0.63552 0.56743 Year 6 Year 7 Year 8 0.50663 0.45235 0.40388 0.36061 0.32197 Year 9 Year 10 12. Use the chart above to calculate the net present value of investment whose initial cost is $11,500 and will generate an annual net cash flow as shown below. an = = Year 1 $2,000 Year 2 $3,000 Year 3 $7,000 Year 4 = $2,000 Year 5 $2,500 Total Present Value = = firm purchase the asset? Yes, Should the No

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