Samuel buys office supplies for his home buissness
1 answer:
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Answer:
$27,643
Step-by-step explanation:
The net present value is the present value of after tax cash flows from an investment less the amount invested.
The formula for the NPV can be found in the attached image.
The NPV can be found using a financial calculator:
The cash flow for year zero = $-36,000
Cash flow from year one to three = $19,000
Cash flow for year four =$19,000 + $5,000 = $24,000
I = 10%
NPV = $27,643
I hope my answer helps you
Sorry I was moving around taking the picture and my handwriting is sloppy. But I hope you understand how I got the answer
