Present valuegiven the following cash flowsyear 1 2000 year, Ask an Expert

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Present value

Given the following cash flows,

Year 1: $2,000 Year 3: $6,000

Year 2: $4,000 Year 4 $2,000

a) Calculate the present value using a 10% discount rate:

b) If the discount rate were changed to 11% would you expect PV to increase or decrease? Why?

c) if the initial investment was $10,000, would you do the project? Why/ why not?

d) If a project had a zero NPV, would you do the project? why/why not?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92095371

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