Answer:
$5,681.08
Explanation:
The net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be found using a financial calculator
Cash flow in year 0 = $-120,000
Cash flow in year 1 = $48,000
Cash flow in year 2 = $54,000
Cash flow in year 3 = $76,000
Cash flow in year 4 = $-12,000
I = 15%
NPV = $5,681.08
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
