Question

Round final answer to 2 decimal places

103 minutes. Question 1 Calculate the NPV for the following investment A, assuming an annual discount rate of 10%. C-10000 C-8,000 C-6.000 -7500.500-7.500 10 10,000 3 C: Cost, Lincome, L: Salvage value 1335614 To determine the NPV, you will need to calculate: NPV -10,000-8,000.(P/F10%, 1)-6,000.(P/F10 %2) + 7,500.(P/Fiosz).(PA10%8) + 10,000. (PF10% to)

Answer 1

Net present value= $39,154.56

Year	Cash Inflows	PV factor at 10%	Present value
1	$         8,000.00	0.9090909	$         7,272.73
2	$         6,000.00	0.8264463	$         4,958.68
3	$         7,500.00	0.7513148	$         5,634.86
4	$         7,500.00	0.6830135	$         5,122.60
5	$         7,500.00	0.6209213	$         4,656.91
6	$         7,500.00	0.5644739	$         4,233.55
7	$         7,500.00	0.5131581	$         3,848.69
8	$         7,500.00	0.4665074	$         3,498.81
9	$         7,500.00	0.4240976	$         3,180.73
10	$         7,500.00	0.3855433	$         2,891.57
10	$       10,000.00	0.3855433	$         3,855.43
Total			$      49,154.56
(-) Initial Cost			$      10,000.00
Net Present Value (NPV)			$      39,154.56