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Brett Collins expected NPV actual NPV 10% discount rate

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Brett Collins is reviewing his company's investment in a cement plant. The company paid $16,000,000 five years ago to acquire the plant. Now top management is considering an opportunity to sell it. The president wants to know whether the plant has met original expectations before he decides its fate. The company's discount rate for present value computations is 10 percent. Expected and actual cash flows follow: (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

Five years of data for expected and actual.

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Carol Sargent, PhD
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  • MSc, University of Virginia
  • PhD, Georgia State University
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