Answer:
$19,385.93
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 in year 0 = $-48,000.
Cash flow in year 1 = $18,000.
Cash flow in year 2 = $22,000.
Cash flow in year 3 = $25,000.
Cash flow in year 4 = $12,000.
Cash flow in year 5 = $7,000.
I = 9%
NPV = $19,385.93
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
