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2 years ago

Blue SpruceCompany is considering two capital investment proposals. Estimates regarding each project are provided below:

Business

1 answer:

Elden [556K]2 years ago

7 0

Answer:

c) $167830.

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator,

Cash flow in year 0 = $-468,000

Cash flow each year from year one to six = $146,000

I = 10%

NPV = $167,868.06

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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