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sergiy2304 [10]
4 years ago
13

Question 7

Business
2 answers:
Oksana_A [137]4 years ago
8 0
It would be A. Hope this Helped.
Katarina [22]4 years ago
7 0
The correct answer would be A
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All of the above is the best answer
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$-9.48

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow = (revenue - cost - depreciation) (1 - tax rate) + depreciation

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

(400 - 0) / 5 = 80

(200 - 90- 80) x (1 - 0.32)  + 80 = $100.40

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I = 9%

NPV = $-9.48

To find the NPV using a financial calculator:

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  

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