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1.
Present Value Net Cash Present Value of Net Cash Present Value of Net Cash Present Value of
of $1 at 15% Flow Net Cash Flow Flow Net Cash Flow Flow Net Cash Flow
Year 1
Year 2
Year 3
Total
Amount to be invested
Net present value
2. Present value index:
Total present value of net cash flow
Divided by amount to be invested
Present value index
3.
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Net Present Value Analysis
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
1.
Present Value Net Cash Present Value of Net Cash Present Value of Net Cash Present Value of
of $1 at 15% Flow Net Cash Flow Flow Net Cash Flow Flow Net Cash Flow
Year 1 0.870 200,000$ 174,000$ 190,000$ 165,300$ 275,000$ 239,250$
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Net Present Value Analysis
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