Answer:
NPV = $-42,124.72
Explanation:
The new present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator:
Cash flow in year 0 = $-54,000
Cash flow each year in year 1 and 2 = $2,600
Cash flow in year 3 = $2,600 + $7,200 = $9,800
I = 10%
NPV = $-42,124.72
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
Suppose in 2020, you purchase a house built in 2014. The value of the services of the real estate agent. the value of the services of the real estate agent would be included in the gross domestic product for 2020 This is further explained below.
<h3>What is the gross domestic product?</h3>
Generally, Final products and services—i.e., those purchased by consumers—are included in GDP, which estimates the value of goods and services produced in a specific period of time.
In conclusion, Imagine that in the year 2020 you decide to buy a home that was constructed in 2014. The price that should be paid for the real estate agent's services. The total value of the real estate agent's services would be included in the calculation of the gross domestic product for the year 2020.
Read more about gross domestic product
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