How can you compare the calculated PV in light of the fact that the undiscounted cash flow totals $150,000 in each case?????
15%
Cash Flow Stream
year a b
1 ............. 50,000 ..........10,000
2 ..............40,000 .......... 20,000
3 ............ 30,000.......... 30,000
4 ............ 20,000 .......... 40,000
5 ..............10,000 .......... 50,000
Totals ..150,000 ........ 150,000
For "A" using financial tables total NPV is $109,856.33 and using Excel an function the total NPV is $109,856.33
For "B" using financial tables total NPV is $91,290.00 and using Excel an function the total NPV is $91,272.98
HELP!!!!!
2006-11-03
14:01:38
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2 answers
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asked by
Anonymous
in
Investing