Capital Budgeting using Net Present Value Method PV of Cost of Investment PV of Net Cashflow: Year 1 2 3 4 5 Net Present Value Net Income + Depreciation 791,943.47 887,316.75 973,808.74 1,070,891.54 1,179,476.15 PV Factor of 12% 0.8929 0.7972 0.7118 0.6355 0.5674 Present Value of Net Cashflow 1,460,605.14 0.00

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Can u solve NPV, use excel if possible

Capital Budgeting using Net Present Value Method
PV of Cost of Investment
PV of Net Cashflow:
Year
1
2
3
4
5
Net Present Value
Net Income +
Depreciation
791,943.47
887,316.75
973,808.74
1,070,891.54
1,179,476.15
PV Factor of
12%
0.8929
0.7972
0.7118
0.6355
0.5674
Present Value of
Net Cashflow
1,460,605.14
0.00
Transcribed Image Text:Capital Budgeting using Net Present Value Method PV of Cost of Investment PV of Net Cashflow: Year 1 2 3 4 5 Net Present Value Net Income + Depreciation 791,943.47 887,316.75 973,808.74 1,070,891.54 1,179,476.15 PV Factor of 12% 0.8929 0.7972 0.7118 0.6355 0.5674 Present Value of Net Cashflow 1,460,605.14 0.00
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