NET PRESENT VALUE (NPV) 1. A bicycle sales company invests €600,000; where you will have the following payments and collections during the next 4 years at a rate of 8%. You will need to calculate the NPV. YEAR 1 2 3 4 CHARGE S 350,000 250,000 400,000 400,000 PAYMEN TS 45,000 70,000 85,000 85,000 CASH FLOWS

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...
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NET PRESENT VALUE (NPV)
1. A bicycle sales company invests €600,000; where you will have the
following payments and collections during the next 4 years at a rate of 8%.
You will need to calculate the NPV.
YEAR
1
234
CHARGE
S
350,000
250,000
400,000
400,000
PAYMEN
TS
45,000
70,000
85,000
85,000
CASH
FLOWS
Transcribed Image Text:NET PRESENT VALUE (NPV) 1. A bicycle sales company invests €600,000; where you will have the following payments and collections during the next 4 years at a rate of 8%. You will need to calculate the NPV. YEAR 1 234 CHARGE S 350,000 250,000 400,000 400,000 PAYMEN TS 45,000 70,000 85,000 85,000 CASH FLOWS
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