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What is the net present value of the following set of cash flows at a discount...

What is the net present value of the following set of cash flows at a discount rate of 10 percent? Time Period Cash Flow 0 -$16,000 1 4,500 2 8,500 3 12,000 Group of answer choices $4,131 $2,783 $9,000

Homework Answers

Answer #1
Year Cash Flow PV Factor PV Of Cash Flow
a b c=1/1.10^a d=b*c
0 $ -16,000 1 $         -16,000.00
1 $      4,500 0.9091 $             4,090.91
2 $      8,500 0.8264 $             7,024.79
3 $    12,000 0.7513 $             9,015.78
Net Present Value $                   4,131
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