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Are the calculations below correct? ly-abex,x\' A.y.A- :1. O!\' E . Emphasis Hea

ID: 2604036 • Letter: A

Question

Are the calculations below correct? ly-abex,x' A.y.A- :1. O!' E . Emphasis Heading 1 , Normal Strong Subtitle Font Paragraph Styles Year 4 Cash flow- $6,500,000 "expected return of 8.9% is used as the discount raste Net Present Value Calculations(NPV): The value of the money changes over a period of time. Present value = Future earnings x [1/(1+1)nl, i-interest or discount rate and n equals number of years Year 1-$5,095,000-$1,500,000x1/1.089)1 $1,377,410.468 Year 2-$5,095,000-$3,000,000x1/(1.089)2-$5,509,641.87 Year 3-$5,095,000-$4,500.000x1/1.089)3-$12.396,694.2

Explanation / Answer

No the calculatons are not correct and also the question is not clear. as it cannt explains, what it actually asks?

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