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I need to calculate the net present value assuming a 12% discount rate with the following information: Cash Flows Year 0: $0 Year 1: $2874000 Year 2:...

I need to calculate the net present value assuming a 12% discount rate with the following information:

Cash Flows

Year 0: $0

Year 1: $2874000

Year 2: $2874000

Year 3: $2874000

Year 4 $4874000

I came up with $10,000,488. The answer is incorrect. Please advise.

Top Answer

The difference in your answer seems to be due to... View the full answer

IMG_20190502_175415_638.jpg

Year Cash flow P.V. factor Present
@ 12%
Value
1 $2874000 0. 892857 1 4 $2566071. 42
2 5287 4000 0. 797 1 9387 $2291 135. 18
3 $2874000 0. 71 178024 $2045656. 40
4 5487 4000 0. 635 5 / 807...

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