What is the NPV at a discount rate of zero percent? ( Do not round intermediate

Question

What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations.)

What is the NPV at a discount rate of 12 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

What is the NPV at a discount rate of 23 percent? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign.Round your answer to 2 decimal places (e.g., 32.16).)

What is the NPV at a discount rate of 32 percent? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16).)

Consider the following cash flows:

Explanation / Answer

Requirement 1:

Compute the NPV of the project when the discount rate is 0 percent:

Therefore, the NPV of the project when the disount rate is 0% os $9,500.

Compute the NPV of the project when the discount rate is 12 percent:

Therefore, NPV of the project when the discount is 12% is $1240.16.

Compute the NPV of the project when the discount rate is 23 percent:

Therefore, the NPV of the project when the discount rate is 23% is -$4205.97.

Compute the NPV of the project when the discount rate is 32 percent:

Year Cash Flow Discount@0% Present value of cash flows 0 (33,000.00) 1 (33,000.00) 1 13,400.00 1 13,400.00 2 18,300.00 1 18,300.00 3 10,800.00 1 10,800.00 Net Present Value 9,500.00

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