The following table shows a company's cashflows over a ten year period. Year Cashflow 1 -200 2 -100 3 5 4 10 5 -20 6 300 7 455 8 -200 9 110 10 150 Report the net present value of these cashflows assuming a discount rate of 19.069%. $499.73 $509.90 $510.00 $0.00
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NPV is the sum of the present values of cash flows. Present value of a cash flow is the amount of its future value today. It is calculated by dividing the future cash flow by one plus the discount rate raised to the power of the period number. The formula for NPV Show more…
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