Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=19)
-   -   Net Present Value (https://www.askmehelpdesk.com/showthread.php?t=710531)

  • Oct 20, 2012, 03:46 PM
    lockhj1
    Net Present Value
    A company plans to make and sell a new product with net cash flows of $85,000 for year 1 - 10 and -20,000 in year 11 and 95,000 in year 12. They will have to purchase new equipment at $200,000 with a 12 year life and a $20,000 salvage value. The company's required rate of return is 12%. What is the net present value?
  • Oct 20, 2012, 05:32 PM
    tikitamde
    Approximately $340k in today's terms.
  • Oct 21, 2012, 04:24 AM
    ArcSine
    Fortunately, Tikitamde, do-overs are allowed around here. You'll want to take one on your calculation. Also, have a glance at the forum's homework-help rules when you have a moment.

  • All times are GMT -7. The time now is 11:23 PM.