18. What is the NPV of the following cash flows? The company uses an 11% discount rate. ($168,000) $25,000 $25,000 $25,000 Initial Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash Flow $0 $75,000 $75,000 $80,000 Year 5 Cash Flow Year 6 Cash Flow Year 7 Cash Flow $80,000 $90,000 $100,000 Year 8 Cash Flow Year 9 Cash Flow Year 10 Cash Flow A. $121,348.25 B. $146,456.34 C. $109,322.75 D. $131,942.65

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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18. What is the NPV of the following cash flows? The company uses an 11% discount rate.
($168,000)
$25,000
$25,000
$25,000
Initial Cash Flow
Year 1 Cash Flow
Year 2 Cash Flow
Year 3 Cash Flow
Year 4 Cash Flow
$0
$75,000
$75,000
$80,000
Year 5 Cash Flow
Year 6 Cash Flow
Year 7 Cash Flow
$80,000
$90,000
$100,000
Year 8 Cash Flow
Year 9 Cash Flow
Year 10 Cash Flow
A. $121,348.25
B. $146,456.34
C. $109,322.75
D. $131,942.65
Transcribed Image Text:18. What is the NPV of the following cash flows? The company uses an 11% discount rate. ($168,000) $25,000 $25,000 $25,000 Initial Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash Flow $0 $75,000 $75,000 $80,000 Year 5 Cash Flow Year 6 Cash Flow Year 7 Cash Flow $80,000 $90,000 $100,000 Year 8 Cash Flow Year 9 Cash Flow Year 10 Cash Flow A. $121,348.25 B. $146,456.34 C. $109,322.75 D. $131,942.65
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