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Author Question: A company needs to spend $15 000 for each of the next three years. Net returns beginning in Year 4 ... (Read 401 times)

Beheh

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Question 1

A company buys equipment for $15 000 today and has annual net cash inflows of $6000 for 3 years. The discount rate is 12% compounded annually. What is the Net Present Value (NPV)?
◦ $552.90
◦ -$525.90
◦ $992.50
◦ $652.90
◦ -$652.90

Question 2

A company needs to spend $15 000 for each of the next three years. Net returns beginning in Year 4 are estimated at $2500 per year for ten years. The required rate of return is 9.75% compounded annually. The NPV is?
◦ $27 521.41
◦ -$27 721.41
◦ -$27 521.41
◦ -$25 721.41
◦ $25 217.41


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Marked as best answer by Beheh on Jun 7, 2019

Ahernandez18

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Beheh

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Reply 2 on: Jun 7, 2019
Great answer, keep it coming :)


Zebsrer

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Reply 3 on: Yesterday
:D TYSM

 

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