83 0 im lf your cost of capta g dollar amount you need to s

83 0 im ·lf your cost of capta g%, dollar amount you need to s the ou are prepa ng o produce some goods for sale. You will sell them in one year and you wil incur costs of goods for in order for this to be a non-negative NPV? edia s a s he minin un The minimum dollar amountis (Round to the nearest dollar.)

Solution

NPV=Present value of inflows-Present value of outflows

Hence minimum present value of inflows=$83000

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

83000=Cash flow/1.069

Cash flow=(83000*1.069)

=$88727.