Total cost $ Current value of $ at Year Revenue $ Current value of returns at 10% discount rate $ 50% discount rate 2018 1 2019 2020 6150000 5082644.628 2733333.333 2021 6150000 4620586.026 1822222.222 4 2022 6150000 4200532.75 1214814.815 5 2023 6150000 3818666.137 809876.5432 2024 6150000 3471514.67 539917.6955 7 2025 6457500 3313718.548 377942.3868 8. 2026 6457500 3012471.408 251961.5912 9. 2027 6457500 2738610.371 167974.3941 10 2028 6457500 2489645.791 111982.9294 12 2029 6457500 2057558.505 49770.19086 7. ECONOMIC FEASIBILITY STUDY 7.1. Net Present Value (NPV) N3

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
icon
Related questions
Question
Solve using Rate of Return Method
Total cost $
Current value of $ at
Year Revenue $
Current value of returns at
10% discount rate $
50% discount rate
2018
1
2019
2020
6150000
5082644.628
2733333.333
2021
6150000
4620586.026
1822222.222
4
2022
6150000
4200532.75
1214814.815
5
2023
6150000
3818666.137
809876.5432
2024
6150000
3471514.67
539917.6955
7
2025
6457500
3313718.548
377942.3868
8.
2026
6457500
3012471.408
251961.5912
9.
2027
6457500
2738610.371
167974.3941
10
2028
6457500
2489645.791
111982.9294
12
2029
6457500
2057558.505
49770.19086
7. ECONOMIC FEASIBILITY STUDY
7.1. Net Present Value (NPV)
N3
Transcribed Image Text:Total cost $ Current value of $ at Year Revenue $ Current value of returns at 10% discount rate $ 50% discount rate 2018 1 2019 2020 6150000 5082644.628 2733333.333 2021 6150000 4620586.026 1822222.222 4 2022 6150000 4200532.75 1214814.815 5 2023 6150000 3818666.137 809876.5432 2024 6150000 3471514.67 539917.6955 7 2025 6457500 3313718.548 377942.3868 8. 2026 6457500 3012471.408 251961.5912 9. 2027 6457500 2738610.371 167974.3941 10 2028 6457500 2489645.791 111982.9294 12 2029 6457500 2057558.505 49770.19086 7. ECONOMIC FEASIBILITY STUDY 7.1. Net Present Value (NPV) N3
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Rate Of Return
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education