1. David Ali Company is considering an investment that has the following net cash flow
information:
Year
1
2
3
Initial Investment
Net Present Value
Present Value
Present Value of
Net Cash flow
of 1 at 12%
Net Cash flow
$8,000
0.8929
$
10,000
0.7972
$
12,000
0.7118
$
($25,000)
Required:
a. Compute the net present value by filling the blanks provided above