FINANCE 301-MODULE-4-CASE

FINANCE 301-MODULE-4-CASE - YEAR CASH FLOW DISCOUNT CASH...

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FINANCE 301 MODULE 4- OVERDUE CASE ASSIGNMENT DR. POLLARD If discount rate is 0%, what is project’s net present value? A. YEAR CASH FLOW DISCOUNT CASH FLOW RUNNING TOTAL 0 -550,000 -550,000 -550,000 1 90,000 90,000 -460,000 2 100,000 100,000 -360,000 3 450,000 450,000 +90,000 = NPV If discount rate is 4%, what is project’s net present value? YEAR CASH FLOW DISCOUNT CASH FLOW RUNNING TOTAL 0 -550,000 -550,000 -550,000 1 90,000 86,538 -463,461 2 100,000 92,455 -371,005 3 450,000 400,048 +29,043= NPV If discount rate is 8%, what is project’s net present value?
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Unformatted text preview: YEAR CASH FLOW DISCOUNT CASH FLOW RUNNING TOTAL-550,000-550,000-550,000 1 90,000 83,333-466,666 2 100,000 85,733-380,932 3 450,000 357,224-23,707= NPV If discount rate is 10%, what is projects net present value? YEAR CASH FLOW DISCOUNT CASH FLOW RUNNING TOTAL 0 -550,000-550,000-550,000 1 90,000 81,818-468,181 2 100,000 82,644-467,355 3 450,000 338,091-47,444= NPV...
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This note was uploaded on 10/26/2011 for the course FIN 301 taught by Professor Dr.sopko during the Fall '11 term at Trident Technical College.

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