Answered

Explore IDNLearn.com to discover insightful answers from experts and enthusiasts alike. Join our community to receive prompt and reliable responses to your questions from experienced professionals.

determine the net present value of this investment, assuming a 10% minimum rate of return. use the present value tables provided above. if required, round to the nearest whole dollar.

Sagot :

Varshamittal029idn

The net present value of this investment is $19228

                                Table value             Cash                 Present value
                                                                  Flow                    Cash flow
1                                0.870                  $72000                    $62640
2                               0.756                  $55000                    $41580
3                               0.658                  $42000                    $27636
4                               0.572                  $28000                    $16016
Present value                                                                       $147872
of net cash flow
(Less) Amount to be                                                               ($16700)

Net present value                                                               ($19228)

No, because the net present value indicates that the return on the proposal is less than the minimum rate of interest 15%.

Net present value- The difference between the present value of cash inflows and the present value of cash outflows over time is defined as net present value. The net present value (NPV) is a calculation used in capital budgeting and investment to determine the profitability of a proposed investment or project.

                                                                   
For more information on net present value visit:
https://brainly.com/question/18848923
#SPJ4

Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Your questions deserve precise answers. Thank you for visiting IDNLearn.com, and see you again soon for more helpful information.