Finance Assignment
NPV
| Rate | 15% | Alternative Method | |||||
| PV | PV | ||||||
| Year | Cash Flows | Factors | Cash Flows | ||||
| 0 | -$30,000 | 1.0000 | -$30,000 | ||||
| 1 | $6,000 | 0.8696 | $5,217 | ||||
| 2 | $6,000 | 0.7561 | $4,537 | ||||
| 3 | $6,000 | 0.6575 | $3,945 | ||||
| 4 | $6,000 | 0.5718 | $3,431 | ||||
| 5 | $6,000 | 0.4972 | $2,983 | ||||
| 6 | $6,000 | 0.4323 | $2,594 | ||||
| 7 | $6,000 | 0.3759 | $2,256 | ||||
| 8 | $8,000 | 0.3269 | $2,615 | ||||
| Net Present Value--> | ($2,422.27) | -$2,422 | |||||
| Internal Rate of Return | 12.6% |