The cash flow associated with the flour production of Liwayway Flour is shown below. Determine the net present worth (year 0) at an interest rate of 10% per year. YearIncome $Cost $1020000200008000 8000345 678922000020000 30000 30000 30000 30000 30000 300008000 8000 12000 12000 12000 12000 12000 25000

Net Present Worth (NPW), also known as Net Present Value (NPV), is a financial metric used to…

Answered: Year 0 Income $ 20000 Cost $ 1 20000…

Year 0 Income $ 20000 Cost $ 1 20000 8000 8000 4 5 6 7 8 9 2 20000 3 20000 30000 30000 30000 30000 30000 30000 8000 8000 12000 12000 12000 12000 12000 25000

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter5: Operating Activities: Purchases And Cash Payments

Section: Chapter Questions

Problem 3.3C

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Question

The cash flow associated with the flour production of Liwayway Flour is shown below. Determine the net present worth (year 0) at an interest rate of 10% per year.

Year
Income $
Cost $
1
0
20000
20000
8000 8000
3
4
5 6
7
8
9
2
20000
20000 30000 30000 30000 30000 30000 30000
8000 8000 12000 12000 12000 12000 12000 25000

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