Respuesta :
Answer:
value.(a)$240,000/4= $60,000= 25%($480,000 + $0)/2 $240,000
(b)YearPresent Valueof $1 at 15%NetCash FlowPresent Value ofNet Cash Flow1.870$ 210,000$ 182,7002.756200,000151,2003.658160,000105,2804 .572 150,000 85,800 Total $ 720,000 $ 524,980 Amount to be invested 480,000 Net present value $ 44.4980
Answer:
Average rate of Return = Average profit / Average investment
= 60,000 / 240,000
=0.25 *100 = 25%
Net Present value = Present value of future cash floes - initial investment
= $524,980 - $480,000
= $44,980
Explanation:
profits = 240,000/4 =60,000
average investment = 480,000/2=240,000
Present value = $524,980
year 1 = 210,000*0.870 =182,700
year 2 = 200,000*0.756=151,200
year 3 = 160,000*0.658=105,280
year 4 = 150,000*0.572 =85,800