10

docx

School

Georgia Institute Of Technology *

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Course

104

Subject

Finance

Date

Feb 20, 2024

Type

docx

Pages

1

Uploaded by PrivateButterflyMaster3334

Report
1) A company is considering purchasing a plant asset for $25,000. The company estimates that the asset will have the following additional annual net cash flows: Year 1 $5,000; Year 2 $7,000; Year 3 $11,000; Year 4 $12,000. Assume the cash flows will be received at the end of the year and that the company requires a 10% annual return on the investment. Calculate Net Present Value. 1 + .10 = 1.10 1 / 1.10 = .9091 1 / (1.10) 2 = .8264 1 / (1.10) 3 = .7513 1 / (1.10) 4 = .6830
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