Assignment # 3A
Crodriguez1
npv_example.xlsxSheet1
| NPV example | |||
| Discount rate | 16% | ||
| Year | Cash in (out) | PV factors | PV of cash flows |
| 0 | (80,000) | 1.0000 | (80,000) |
| 1 | 20,000 | 0.8621 | 17,241 |
| 2 | 18,000 | 0.7432 | 13,377 |
| 3 | 22,500 | 0.6407 | 14,415 |
| 4 | 10,000 | 0.5523 | 5,523 |
| 5 | 30,000 | 0.4761 | 14,283 |
| Net Present Value | (15,161) | ||
| Internal rate of return | 7.81% |
