The Ziggy Trim and Cut Company can purchase equipment on sale for $4,300. The asset has a three-year life, will produce a cash flow of $1,200 in the first and second year, and -$3,000 in the third year. The interest rate is 12%. Calculate the project's NPV
The Ziggy Trim and Cut Company can purchase equipment on sale for $4,300. The asset has a three-year life, will produce a cash flow of $1,200 in the first and second year, and -$3,000 in the third year. The interest rate is 12%. Calculate the project's NPV
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The Ziggy Trim and Cut Company can purchase equipment on sale for $4,300. The asset has a three-year life, will produce a cash flow of $1,200 in the first and second year, and -$3,000 in the third year. The interest rate is 12%. Calculate the project's NPV .
a.
-5,620.15
b.
-4,407.28
c.
4,407.28
d.
8,463.40
e.
136.60
Clear my choice
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