What is the NPV? r=9.28 c1= 5.853 c2= 6.37 + 1,826.76

Question

Question

What is the NPV?

r=9.28

c1= 5.853

c2= 6.37 + 1,826.76

business finance

Answer 1

Answer #1

NPV is the sum of the present value of all future cash flows

Cashflows:

C₁ = 5.853

C₂ = 6.37 + 1826.76 = 1833.13

r = 9.28%

We will use the following formula for NPV

here we have only two cash flows C_1, C₂. So, NPV is given by:

NPV = 1540.368

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Answer 2

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