Question 10 165 pts What is the net present value of the fol

Question 10 1.65 pts What is the net present value of the following cash flows if the relevant discount rate is 8.0 percent? Year Cash Flow 68,000 51,000 -39,000 74,000 0 2 3 $54,211.40 $1,482.15 $4,529.59 $71,402.02 $23,507.19

Solution

Net present value = Present value of cash inflow-Present value of cash outflow

= (51000*0.92593+74000*0.79383)-(68000*1+39000*0.85734)

Net present value = 4529.59

So answer is c) $4529.59