Essay about Net Present Value and Cash Flow

Submitted By YoRomario
Words: 331
Pages: 2

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9. 8%: CF0:-79,000, C01:17,300, F01: 9, NPV: 29,071.16
20%: NPV: -9,264.28. NO NPV is negative.
Indifferent at 16.25%
16. a. Cash flow 1: 77,092.41/64,000=1.2 Cash flow 2: 24,122.46=1.34.
Cash flow 2 because we receive .14 cents more for every dollar that is invested.
b. Cash flow 1: NPV=13,092.41
Cash flow 2: NPV=6,122.46
Cash flow 1 because the NPV is greater.
c. PI is not a good measurement for comparison and is useful when available funds are limited.
19. Discontinuing:19.29
The Reinvestment approach: 25%: Decline because the NPV has a negative value of 3,168.00
9. 8%: CF0:-79,000, C01:17,300, F01: 9, NPV: 29,071.16
20%: NPV: -9,264.28. NO NPV is negative.
Indifferent at 16.25%
16. a. Cash flow 1: 77,092.41/64,000=1.2 Cash flow 2: 24,122.46=1.34.
Cash flow 2 because we receive .14 cents more for every dollar that is…