Consider the following cash flows: Year Cash Flow $33,000 13,400 18,300 10,800 3 a. What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the NPV at a discount rate of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the NPV at a discount rate of 23 percent? (A negative answer should be

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Consider the following cash flows:
Year
Cash Flow
33,000
13,400
18,300
10,800
1
2
3
a. What is the NPV at a discount rate of zero percent? (Do not round intermediate
calculations and round your answer to the nearest whole number, e.g., 32.)
b. What is the NPV at a discount rate of 12 percent? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. What is the NPV at a discount rate of 23 percent? (A negative answer should be
indicated by a minus sign. Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
d. What is the NPV at a discount rate of 32 percent? (A negative answer should be
indicated by a minus sign. Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
а.
Net present value
b.
Net present value
C.
Net present value
d.
Net present value
Transcribed Image Text:Consider the following cash flows: Year Cash Flow 33,000 13,400 18,300 10,800 1 2 3 a. What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the NPV at a discount rate of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the NPV at a discount rate of 23 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the NPV at a discount rate of 32 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) а. Net present value b. Net present value C. Net present value d. Net present value
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