Purchase Solution

NPV

Not what you're looking for?

Ask Custom Question

What is the net present value of a project that contributes $25,000 at the end of the first year and $12,000 at the end of the second year? The initial cost is $33,000. The appropriate interest rate is 7% for the first year and 10% for the second year.

$ 281.85
$ 559.90
$1,579.44
$-2,148.26

Purchase this Solution
Solution Summary

The solution calculates net present value of a project.

Solution Preview

Answer: $ 281.85
Year Cash flow Discount factor Discounted ...

Purchase this Solution
Free BrainMass Quizzes
Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

View More Free Quizzes
Related BrainMass Solutions

  • NPV, IRR, and Sensitivity Analysis

    cash flow Year Cash flow ;+NPV ;-NPV ;+NPV ;-NPV ;+NPV ;-NPV 0 -$42,000 2% 3% 1.00 1.00 -$42,000 -$42,000 1..10 $4,700 2% 3% 8.98 8.53 $42,218 $40,092 NPV $218 -$1,908 IRR 2.10% 10% Decrease Discount

  • Expected NPV and standard deviation of NPV with real example

    What are the project's expected NPV and standard deviation of NPV? b. Should the base case analysis use the most likely NPV or expected NPV? Explain your answer. a.

  • NPV

    126133 NPV You have estimated 3 possible NPV outcomes for an investment under analysis, the expected NPV, the best case NPV and the worst case NPV. You have also gotten estimates from management on the probability of each of these three cases.

  • Coefficeint of variation of NPV

    (Expected NPV and standard deviation of NPV in thousands). The expected NPV, standard deviation of NPV, and coefficeint of variation of NPV is calculated when a probability distribution of NPV is given.

  • Calculating NPV at Various Discount Rates

    What is the NPV at a discount rate of 11 percent? What is the NPV at a discount rate of 21 percent? What is the NPV at a discount rate of 29 percent?

  • NPV, IRR and Profitability Index

    NPV=0.

  • NET PRESENT VALUE and internal rate of return FOR CAPITAL

    You can get the NPV for 0%. 4% NPV would be $46,822.37 8% NPV would be -$7,831.63 10% NPV would be -$32,419.23 NPV is calculated by finding the present value of each cash flow, including both cash inflows and outflows, discounted

  • NPV analysis of Jameson Cargile, Inc.

    NPV is just for analysis. B. The YellowJacket is a better choice because the negative NPV is greater than the negative NPV associated with the Bumblebee. C.

  • Internal rate of return

    the discount rate that makes NPV negative. the rate of return that makes the NPV positive. One disadvantage of the NPV method is that: Answer the NPV deals with cash flows.

  • Calculating Net Present Value

    PI= (I+NPV) / I where I=Investment if PI>0 then {(I+NPV) / I}>0 which means NPV> -I meaning NPV>0 where <0> is the limit of I NPV=0={C1 / (1+IRR)}-I={C1 / (1+k)}-I where C1 is the expected future net cash flow that means IRR=K As stated from

View More Related Solutions