Question

PV Cumulative Interest Year Net CF Factor Discounted CF Discounted CF 0 $(65,650,000.00) 1.00 $(65,650,000.00) $(65,650,000.00) 1 $14,333,583.33 1.04 2 $14,333,583.33 1.09 3 $14,333,583.33 1.14 4 $14,333,583.33 1.19 5 $14,333,583.33 1.24 6 $14,333,583.33 1.30 7 $14,333,583.33 1.36 8 $14,333,583.33 1.42 9 $14,333,583.33 1.48 10 $14,333,583.33 1.54 11 $14,333,583.33 1.61 12 $16,795,458.33 1.68

          PV
Cumulative
Interest
Year
Net CF
Factor
Discounted CF
Discounted CF
0
$(65,650,000.00)
1.00
$(65,650,000.00)
$(65,650,000.00)
1
$14,333,583.33
1.04
2
$14,333,583.33
1.09
3
$14,333,583.33
1.14
4
$14,333,583.33
1.19
5
$14,333,583.33
1.24
6
$14,333,583.33
1.30
7
$14,333,583.33
1.36
8
$14,333,583.33
1.42
9
$14,333,583.33
1.48
10
$14,333,583.33
1.54
11
$14,333,583.33
1.61
12
$16,795,458.33
1.68

PV
Cumulative
Interest
Year
Net CF
Factor
Discounted CF
Discounted CF
0
(65,650,000.00)
1.00(65,650,000.00)
(65,650,000.00)
114,333,583.33
1.04
2
14,333,583.33
1.09
314,333,583.33
1.14
4
14,333,583.33
1.19
514,333,583.33
1.24
6
14,333,583.33
1.30
714,333,583.33
1.36
8
14,333,583.33
1.42
914,333,583.33
1.48
10
14,333,583.33
1.54
1114,333,583.33
1.61
12
16,795,458.33
1.68

Added by Jonathon M.

Calculus: Early Transcendentals

James Stewart 8th Edition

Instant Answer

Solved by Expert Vishal Parmar

06/21/2022

Step 1

To calculate the discounted cash flow, we multiply the net cash flow for each year by the corresponding interest factor. Year 0: $(65,650,000.00) * 1.00 = $(65,650,000.00) Year 1: $14,333,583.33 * 1.04 = $14,913,333.33 Year 2: $14,333,583.33 * 1.09 = Show more…

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PV Cumulative Interest Factor 1.00 Year 0 Net CF Discounted CF Discounted CF $(65,650,000.00) $(65,650,000.00) $(65,650,000.00) 1 $14,333,583.33 1.04 2 $14,333,583.33 1.09 3 $14,333,583.33 1.14 4 $14,333,583.33 1.19 5 $14,333,583.33 1.24 6 $14,333,583.33 1.30 7 $14,333,583.33 1.36 8 $14,333,583.33 1.42 9 10 $14,333,583.33 1.48 $14,333,583.33 1.54 11 $14,333,583.33 1.61 12 $16,795,458.33 1.68