Question

1) CF1=-$2,000, CF2=$3,000, CF3=$4,000, CF4=$6,000, CF5=$8,000

Set I =12

Solve for NPV =

2)CF1=$10,000, CF2=$5,000,CF3=$5,000, CF4= $5,000, CF5= $5,000, CF6=$7,000

Set I =12

Solve for NPV =$

3)CF1=$10,000, CF2=$10,000, CF3= $10,000, CF4= $10,000, CF5= $10,000, CF6= $8,000, CF7= $8,000, CF8= $8,000, CF9= $8,000, CF10= $8,000

Set I =12

Solve for NPV =$

Answer 1

1.Net present value is calculated using a financial calculator by inputting the below:

• Press the CF button.
• CF0= $0.
• Cash flow for each year should be entered.
• Press Enter and down arrow after inputting each cash flow.
• After entering the last cash flow cash flow, press the NPV button and enter the interest rate of 12%.
• Press enter after that. Press the down arrow and CPT buttons to get the net present value.

The net present value of cash flows is $11,805.51.

2. Net present value is calculated using a financial calculator by inputting the below:

• Press the CF button.
• CF0= $0.
• Cash flow for each year should be entered.
• Press Enter and down arrow after inputting each cash flow.
• After entering the last cash flow cash flow, press the NPV button and enter the interest rate of 12%.
• Press enter after that. Press the down arrow and CPT buttons to get the net present value.

The net present value of cash flows is $26,034.58.

3. Net present value is calculated using a financial calculator by inputting the below:

• Press the CF button.
• CF0= $0.
• Cash flow for each year should be entered.
• Press Enter and down arrow after inputting each cash flow.
• After entering the last cash flow cash flow, press the NPV button and enter the interest rate of 12%.
• Press enter after that. Press the down arrow and CPT buttons to get the net present value.

The net present value of cash flows is $52,411.34.

In case of any query, kindly comment on the solution