Jay Tanaka
New member
- Joined
- Apr 10, 2018
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Hi guys, I have a Exam tomorrow on intro Finance class. I'm having a difficulty trying to solve this question... if anyone can help, I'd greatly appreciate it!
Q.) What is the net present value of the following cash flows: 1.) one-time investment cost now of $360,000, 2.) revenues of $87,000 for 10 years, 3.) cost of $7000 for 10 years, and 4.) lease payments at the beginning of each year of $12,000 for 10 years with a tax rate of 25 percent and a before tax discount rate of 8 percent?
Q.) What is the net present value of the following cash flows: 1.) one-time investment cost now of $360,000, 2.) revenues of $87,000 for 10 years, 3.) cost of $7000 for 10 years, and 4.) lease payments at the beginning of each year of $12,000 for 10 years with a tax rate of 25 percent and a before tax discount rate of 8 percent?