Use the following cash flow with a 5% discount rate: Year Cash Flow 0 -$ 80,000...

Use the following cash flow with a 5% discount rate:

Year Cash Flow
0 -$ 80,000
1 20,000
2 15,000
3 20,000
4 25,000
5 30,000

What is the NPV?

		$ 9,154
		-$2,567
		$14,003
		$10,036

Expert Solution

Calculation of net present value of project :

Time	Cashflow	PVF @5%	PV
-	-80000	1.00	-80,000.00
1.00	20000	0.9524	19,047.62
2.00	15000	0.9070	13,605.44
3.00	20000	0.8638	17,276.75
4.00	25000	0.8227	20,567.56
5.00	30000	0.7835	23,505.78
			14,003.16
So correct answer is $14003

jeff jeffy answered 3 months ago

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