Question

# For the following set of cash flows,    Year Cash Flow 0 –\$8,000            1 3,400...

 For the following set of cash flows,

 Year Cash Flow 0 –\$8,000 1 3,400 2 6,100 3 3,800

 a. What is the NPV at a discount rate of 0 percent?

 b. What is the NPV at a discount rate of 9 percent?

 c. What is the NPV at a discount rate of 21 percent?
 d. What is the NPV at a discount rate of 26 percent?

NPV - Pv of cash inflows- PV of cash outflows

 Year CF PVF@0% Disc CF PVF@9% Disc CF PVF@21% Disc CF PVF@26% Disc CF 0 \$ -8,000.00 1 -8000 1 \$ -8,000.00 1 \$ -8,000.00 1 \$ -8,000.00 1 \$ 3,400.00 1 3400 0.9174 \$ 3,119.27 0.8264 \$ 2,809.92 0.7937 \$ 2,698.41 2 \$ 6,100.00 1 6100 0.8417 \$ 5,134.25 0.6830 \$ 4,166.38 0.6299 \$ 3,842.28 3 \$ 3,800.00 1 3800 0.7722 \$ 2,934.30 0.5645 \$ 2,145.00 0.4999 \$ 1,899.64 NPV 5300 \$ 3,187.81 \$ 1,121.30 \$     440.33

Pls do rate, if the answer is correct and comment, if any further assistance is required

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