18. What is the NPV of the following cash flows? The company uses an 11% discount rate. ($168,000) $25,000 $25,000 $25,000 Initial Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash Flow $0 $75,000 $75,000 $80,000 Year 5 Cash Flow Year 6 Cash Flow Year 7 Cash Flow $80,000 $90,000 $100,000 Year 8 Cash Flow Year 9 Cash Flow Year 10 Cash Flow A. $121,348.25 B. $146,456.34 C. $109,322.75 D. $131,942.65
18. What is the NPV of the following cash flows? The company uses an 11% discount rate. ($168,000) $25,000 $25,000 $25,000 Initial Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash Flow $0 $75,000 $75,000 $80,000 Year 5 Cash Flow Year 6 Cash Flow Year 7 Cash Flow $80,000 $90,000 $100,000 Year 8 Cash Flow Year 9 Cash Flow Year 10 Cash Flow A. $121,348.25 B. $146,456.34 C. $109,322.75 D. $131,942.65
Chapter1: Financial Statements And Business Decisions
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