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Capital Budgeting using Net Present Value Method PV of Cost of Investment PV of Net Cashflow: Net Present Value Year 1 2 3 5 Net Income + Depreciation 424,136.33 518,972.18 655,465.06 804,369.79 944,783.16 PV Factor of 12% 0.8929 0.7972 0.7118 0.6355 0.5674 Present Value of Net Cashflow 631,449.13 703,622.11 366,400.07 351,076.44 335,063.91 3,020,602.89 2,387,611.66 -632,991.23

Capital Budgeting using Net Present Value Method PV of Cost of Investment PV of Net Cashflow: Net Present Value Year 1 2 3 5 Net Income + Depreciation 424,136.33 518,972.18 655,465.06 804,369.79 944,783.16 PV Factor of 12% 0.8929 0.7972 0.7118 0.6355 0.5674 Present Value of Net Cashflow 631,449.13 703,622.11 366,400.07 351,076.44 335,063.91 3,020,602.89 2,387,611.66 -632,991.23

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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can u explain in excel how did they get this value, some areas

Capital Budgeting using Net Present Value Method PV of Cost of Investment PV of Net Cashflow: Net Present Value Year 1 2 3 4 Net Income + Depreciation 424,136.33 518,972.18 655,465.06 804,369.79 944,783.16 PV Factor of 12% 0.8929 0.7972 0.7118 0.6355 0.5674 Present Value of Net Cashflow 3,020,602.89 631,449.13 703,622.11 366,400.07 351,076.44 335,063.91 2,387,611.66 -632,991.23
Transcribed Image Text:Capital Budgeting using Net Present Value Method PV of Cost of Investment PV of Net Cashflow: Net Present Value Year 1 2 3 4 Net Income + Depreciation 424,136.33 518,972.18 655,465.06 804,369.79 944,783.16 PV Factor of 12% 0.8929 0.7972 0.7118 0.6355 0.5674 Present Value of Net Cashflow 3,020,602.89 631,449.13 703,622.11 366,400.07 351,076.44 335,063.91 2,387,611.66 -632,991.23
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