With an 8% interest rate, calculate the (1) Net future value (2) Net present value with the

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With an 8% interest rate, calculate the 

(1) Net future value 

(2) Net present value with the following five-year cash flow projections.

Years                                                  Cash Flow

0 ………………………………. $150,000

1 ……………………………….        40,000

2 ……………………………….        50,000

3 ……………………………….        55,000

4 ……………………………….        60,000

5 ……………………………….        70,000

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...
Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...
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