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If an investment requires an initial investment of $100,000 and-(Answered)

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Question

If an investment requires an initial investment of $100,000 and then returns annual inflows of year 1=$45,000, year 2=$30,000, year 3=$40,000, and year 4=$30,000, what is the NVP if the WACC is 10%?
Year

 

1

 

2

 

3

 

4

 


 

Cash

 

Flow rate

 

###

 

10%

 

###

 

10%

 

###

 

10%

 

###

 

10%

 


 

PV

 

0.909

 

0.826

 

0.751

 

0.683

 


 

NPV

 


 

40905

 

24780

 

30040

 

20490

 

116215

 

100000

 

16215

 


 

 

Paper#9210045 | Written in 27-Jul-2016

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