Answer:
NPV = $23,146.99
Explanation:
The net present value is the present value of after tax cash flows from an investment less the amount invested.
The NPV can be calculated using a financial calculator:
Cash flow in year o = $- 130,000
Cash flow each year in year 1 and 2 = 0
Cash flow each year in year 3 to 12 = $34,000
I = 12%
NPV = $23,146.99
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Answer:
porsche
Explanation:
i don't know that was the first thing that came to my head when I thought of p
Answer:
NPV =$ 60,311.80
Explanation:
<em>The net present value (NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.</em>
NPV = PV of cash inflow - PV of cash outflow
We can set out the cash flows of the project using the table below:
0 1 2 3
Operating cash flow 136,000 136,000 136,000
Initial cost (274,000)
Working capital (61,000 ) 61,000
Salvage value <u> </u> <u> </u> <u> </u> 1<u>5000 </u>
Net cashflow <u> (335,000) 136,000 136,000 212,000.</u>
PV inflow= (136000)× (1.1)^(-1) + (136,000× (1.1)^(-2) + (112,000)× (1.1)^(-3)
= 395,311.80
NPV =395,311.80 -335,000
=$ 60,311.80
I believe that it depends on the individuals skills if they match up well enough to the qualities of starting a business and they must know the risk they are taking with a new business so in most cases I think people should continue to look for employment
