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What is the NPV of $50,000 year one, $30,000 year 2 and $80,000 year 3, assuming...

What is the NPV of $50,000 year one, $30,000 year 2 and $80,000 year 3, assuming an initial purchase price of $120,000 and discount rate of 5.75%?

Homework Answers

Answer #1
Year Cash Flow PV Factor PV Of Cash Flow
a b c=1/1.0.0575^a d=b*c
0 $ -120,000 1 $       -120,000.00
1 $     50,000 0.945626 $           47,281.32
2 $     30,000 0.894209 $           26,826.28
3 $     80,000 0.845588 $           67,647.05
NPV $           21,754.66
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