FINANCE 301-MODULE-2-CASEpart2

# FINANCE 301-MODULE-2-CASEpart2 - YEAR CASH FLOW DISCOUNT...

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RODNEY BUCKMIRE MODULE 2 – PART II CASE FIN301 If discount rate is 0%, what is project’s net present value? A. YEAR CASH FLOW DISCOUNT CASH FLOW RUNNING TOTAL 0 -400,000 -400,000 -400,000 1 100,000 100,000 -500,000 2 120,000 120,000 -380,000 3 450,000 450,000 +90,000 = NPV If discount rate is 2%, what is project’s net present value? YEAR CASH FLOW DISCOUNT CASH FLOW RUNNING TOTAL 0 -400,000 -400,000 -400,000 1 100,000 98,000 -302,000 2 120,000 117,600 -184,400 3 850,000 833,000 +648,600= NPV If discount rate is 6%, what is project’s net present value?

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Unformatted text preview: YEAR CASH FLOW DISCOUNT CASH FLOW RUNNING TOTAL-400,000-400,000-400,000 1 100,000 94,000-306,000 2 120,000 112,800-193,000 3 850,000 799,000 606,000= NPV If discount rate is 11%, what is project’s net present value? YEAR CASH FLOW DISCOUNT CASH FLOW RUNNING TOTAL 0 -400,000-400,000-400,000 1 100,000 89,000-311,000 2 120,000 106,800 -204,200 3 850,000 756,500 552,300= NPV...
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FINANCE 301-MODULE-2-CASEpart2 - YEAR CASH FLOW DISCOUNT...

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