In: Finance
Calculate the net present value at year 0 for the following cash flows and interest rates compounded semi-annually (rounded $ to two places after the decimal). The year 0 cash flow is $373, the year 1 cash flow is $200, and the year 2 cash flow is $-147. The interest rate for the first period (year 0 to 1) is 3% and the interest rate for the second period (year 1 to 2) is 4.5%.
the net present value at year 0
=373+200/(1+(3%/2))^(1*2)-147/((1+(3%/2))^(1*2)*(1+(4.5%/2))^(1*2))
=430.66
the above is answer