Question

So, it should look something like this:

NPV= (150,000) + 55,783 x PV^AF

NPV = (150,000) + 55,783 x 3.3522

NPV = (150,000) + 186,996

NPV = $36,993.27

How did you get 3.3522? What is the basis and clear formula?

Answer 1

Solution:

In question present value factor and no. Of years not given. But from seeing in the present value annuity factor table, number of years 5 and rate of return 15% i.e., I have highlighted with yellow mark. (Please see below attachme).

Please comment down for any clarification