Question

Inputs: Use 2 inputs: cash flow vector, interest rate. Use values: cash flow = (-10, 2, 4, 5, 9, 6), interest rate = 12%. Assume that cash flows start at t=0 and go on year by year.

Output: Produce a table containing years, cash flows, PV of cash flows, and a summary with NPV, PI, and Payback.

(Rstudio)

Answer 1

Year	Cash flows	PV of CF	Cumulative CF
0	-10	-10	-10
1	2	1.785714	-8
2	4	3.188776	-4
3	5	3.558901	1
4	9	5.719663	10
5	6	3.404561	16

NPV	7.66
PI	1.77
Payback	2.80

WORKINGS