A. assuming that the desired rate of return is 20%, determine the net present value for the proposal. use the table of the present value of $1 presented above. if required, use the minus sign to indicate a negative net present value.

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Laila Newman

Business

1 July, 16:28

A. assuming that the desired rate of return is 20%, determine the net present value for the proposal. use the table of the present value of $1 presented above. if required, use the minus sign to indicate a negative net present value.

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Vaughn Yu · Answer 1

Present value of annual net cash flow:

Using the 20% column:

14,000 x 0.833 = 11,662

12,000 x 0.694 = 8,328

10,000 x 0.579 = 5,790

8,000 x 0.482 = 3,856

18,000 x 0.402 = 7,236

Add the following, you will get the total of 36,872 this is the net present value.