NPV zero - (1+0.092354)^4 = 57591.7 Year 5 83000...

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Calculations last question – setting NPV of Nursery A to zero. Using a discount rate of 9.2354% Year 0 -400000 (1+0.092354)^0 = -400000 Year 1 75000 (1+0.092354)^1 = 68659 Year 2 77000 (1+0.092354)^2 = 64530 Year 3 79000 (1+0.092354)^3 = 60608.9 Year 4 82000
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Unformatted text preview: (1+0.092354)^4 = 57591.7 Year 5 83000 (1+0.092354)^5 = 53365.5 Year 6 84000 (1+0.092354)^6 = 49442 Year 7 85000 (1+0.092354)^7 = 45801 Therefore NPV equals zero as:-400,000 + 68659 + 64530 + 60608.9 + 57591.7 + 53365.5 + 49442 + 45801 = 0...
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This note was uploaded on 11/09/2011 for the course BUS ECO 101 taught by Professor Nguyen during the Three '11 term at Monash.

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