Essaytext

NEED A PERFECT PAPER? PLACE YOUR FIRST ORDER AND SAVE 15% USING COUPON:

# A new computer system will require an initial outlay of \$17,500, but it will increase the firms cash flows by \$3,500 a year for each of the next 8…

A new computer system will require an initial outlay of \$17,500, but it will increase the firms cash flows by \$3,500 a year for each of the next 8…. A new computer system will require an initial outlay of \$17,500, but it will increase the firms cash flows by \$3,500 a year for each of the next 8 years. a.Calculate the NPV and find out if the system worth installing if the required rate of return is 9%? What if it is 14%? I know the correct answers are 1871.87 at 9% and -1263.98 at 14%. However, When I do it, I get the wrong answer and I do it like this:0-17500 =npv(9%, -17500, 3500…3500…) 13500 = 1,717.13 23500 33500 43500 =npv(14%, -17500, 3500…3500…) 53500 =-1108.75 63500 73500 83500 Can anyone explan step by step how to calculate an NPV?

A new computer system will require an initial outlay of \$17,500, but it will increase the firms cash flows by \$3,500 a year for each of the next 8…

## Why US?

##### 100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

##### Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

##### Original Writing

We complete all papers from scratch. You can get a plagiarism report.

##### Money Back

If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.