the annual profit from an investment is $20000 each year fof 5 years and the cost...
the annual profit from an investment is $20000 each year fof 5 years and the cost of investment is $80000 with a salvage value of $50000.The cost of capital at this risk level is 14%. Based on the given information , the net present value of the invedtment=......
Homework Answers
Net present value is calculated by discounting all the net cashflows at the rate of cost of capital which is 14% and subtracting the initial investment
Net cashflow for year 1 to year 4 = 20000 and for year 5 = 20000+50000 = 70000
So, net present value of the investmen = 20000/(1+14%)^1+20000/(1+14%)^2+20000/(1+14%)^3+20000/(1+14%)^4+70000/(1+14%)^5-80000 = 14630.0526
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the annual profit from an investment is $20000 each
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Problem S7.34 Question Help The annual profit from an investment is $20,000 each year for 5...
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Please show the work, I know you have to do the annuity formula first s=RX (x...
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e12.11
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Please show the work, I know you have to do the annuity formula
first s=RX (x use factor table), then NPV formula, and then those 2
parts together and subtract cost of investment I think
The annual profit from an investment is $25,000 each year for 5 years and the cost of investment is $75,000 with a salvage value of $40,000. The cost of capital at this risk level is 12%. Based on the given information, the net present value...
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e12.11
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