1. Lloyd Enterprises has a project which has the following cash flows: Year 0 1 2 3 4 5 Cash Flow -$200,000 50,000 100,000 150,000 40,000 25,000 The cost of capital is 10 percent. What is NPV? Use excel.

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A: Project's NPV = Present value of cashflows - Initial Investment

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A: Therefore, the net present value (NPV) is -$1.44.

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Q: Maude Pasy $5000 a year into an annuity contract for 25 years. Maude is paying what?

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A: Given information :

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.