Business, 21.01.2021 23:10 xxaurorabluexx

Please calculate the Net Present Value for the following scenario: Today End of Year 1 End of Year 2 End of Year 3 End of Year 4
Outflow (investment) 2000
Inflow (return) 300 350 400 450

Discount rate-14%
Annual compounding at the end of the year (do not use your calculator's annuity due function)

Answers: 2

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Answer from: micvar9646

The computation of the net present value is:

-$931.35

The computation of the net present value is given below:

Year Amount Discount factor at 14% Present value

1 $300 0.877 $263.1
2 $350 0.769 $269.15
3 $400 0.675 $270
4 $450 0 .592 $266.4

PV of Cash Inflows = $1,068.65
Initial investment =$2,000
Net Present Value = The present value of Cash inflows - initial investment
Net Present Value = $1,068.65 - $2,000
Net Present Value = -$931.35

The Net Present Value for the following scenario will be -$931.35.

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Answer from: adswadsaasdads

-$931.35

Explanation:

The computation of the net present value is given below:

Before that the present value is

Year Amount Discount factor at 14% Present value

1 $300 .877 $263.1

2 $350 .769 $269.15

3 $400 .675 $270

4 $450 .592 $266.4

PV of Cash Inflows = $1,068.65

And, the initial investment is $2,000

So, the net present value is

= The present value of Cash inflows - initial investment

= $1,068.65 - $2,000

= -$931.35

Answer from: Quest

Answer is false i’m pretty sure

Answer from: Quest

Answersnap;

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Please calculate the Net Present Value for the following scenario: Today End of Year 1 End of Year...