In: Accounting
So, it should look something like this:
NPV= (150,000) + 55,783 x PVAF
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?
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