Search here for Tutorials

If the Data is different in your question, please send your questions to homeworksolutionsnow@gmail.com. The questions will be answered at the same price.

Highlight Inc. is considering an investment project with the following cash flows:


YEAR Cash Flow
1 $ 300.00
2 $ 400.00
3 $ 600.00
4 $ 900.00

If the discount rate is 10% , calculate the present value of these cash flows What will be the present value if the discount rate is changed to 15%.

If the discount rate is 10%, calculate the present value of these cash flows

What will be the present value if the discount rate is changes to 15%

Calculate the NPV using 10% then 15% of the cash flows.

Remember a comparison like this needs to be summed up to obtain the NPV.

No comments: