NPV Test Question

NPV Test Question - Req. 2 Cash PV of $1 Year...

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E20-24 (15-20 min) Req. 1 Net Cash PV of $1 Present Value of Year Inflow Factor Net Cash Inflow 1 $130,000 0.89 $116,090 2 125,000 0.8 $99,625 3 110,000 0.71 $78,320 4 100,000 0.64 $63,600 Total NPV $13,420.00 5 95,000 0.57 $53,865 6 90,000 0.51 $45,630 Present value of net cash inflows $457,130 Less: Investment (450,000) Net present value $7,130.00
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Unformatted text preview: Req. 2 Cash PV of $1 Year (outflow)/inflow Factor Present Value Refurbishment at the end of Year 6 (50,000.00) 0.507 (25,350.00) Cash inflows in Year 7 40,000.00 0.452 18,080.00 Residual value 30,000.00 0.452 13,560.00 Additional NPV provided from refurbishment 6,290.00...
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This note was uploaded on 09/11/2011 for the course TERM 1 taught by Professor Smith during the Spring '11 term at FIT.

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