Answer:
A. $18, 097
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 0 = $-80,000
Cash flow in year 1 = $34,000
Cash flow in year 2 = $37,000
Cash flow in year 3 = $26,000
Cash flow in year 4 = $25,000
I = 10%
NPV = $18,097.12
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
