Q2given below.Discount rateYearCosts. Refer to the formula given in the previous problem, complete the required data in the table8%BenefitsCashflowDiscount factorPresentNetValue (NPV)Discounted costsANSWER0140,000O40,000200,000160,000Return on Investment (Rol)240,000200,000160,000Total

Discount Rate 8% Year 0 1 2 Cost 140,000.00…

Answered: Discount rate Year Costs Benefits…

Discount rate Year Costs Benefits Cashflow Discount factor Present Net Value (NPV) Discounted costs 140,000 O 48000 8% 2 40,000 200,000 40,000 200,000 160,000 160,000 Return on Investment (Rol) Total

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Q2
given below.
Discount rate
Year
Costs
. Refer to the formula given in the previous problem, complete the required data in the table
8%
Benefits
Cashflow
Discount factor
Present
Net
Value (NPV)
Discounted costs
ANSWER
0
140,000
O
40,000
200,000
160,000
Return on Investment (Rol)
2
40,000
200,000
160,000
Total

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