Net Present Value
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Please help doing 3 things:
a. - computing the incremental net income of the investment for each year
b - Compute the incremental cash flow of the investment for each year, and
c - calculate the NPV of the project if the discount rate is 12%
The information has been attached.
year 0 year 1 year 2 year 3 year 4
Investment 10000
revenue 7000 7000 7000 7000
op costs 2000 2000 2000 2000
depreciation 2500 2500 2500 2500
net working capital spending 200 250 300 200
Thank you!
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Solution Summary
The solution assists with computing the incremental net income, cash flow and NPV.
Solution Preview
Please see the attached file fully formatted solution.
Adjusting entries
Date Particulars Debit Credit
$ $
1 31-Jan Debtors a/c or Receivable Dr 875
Revenue a/c 875
(being Andy wright rendered services
but the revenue not yet recorded)
2 31-Jan Utility expense a/c Dr 520
To utility expense payable a/c 520
(being utility expenses
incurrend ...
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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