1 answer

An investment of $83 generates after-tax cash flows of $40.00 in Year 1, $68.00 in Year...

Question:

An investment of $83 generates after-tax cash flows of $40.00 in Year 1, $68.00 in Year 2, and $131.00 in Year 3. The required rate of return is 20 percent. The net present value is


Answers

The net present value is:

= -$83 + $40/1.20 + $68/1.202 + $131/1.203

= $73.37

The net present value is  $73.37

.

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