1. Compute the net present value at i=15% per year, compounded annually, for cash flow below: End of the 1 2 3 4 year Cash flow -400,000 12,000 12,000 12,000 12,000 A machine purchasod for 45 000 had donrociable 1Ife of v ears It udll hauo an oxpoctod

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section9.A: Depreciation
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please answer these two questions. asap. thank you

1. Compute the net present value at i=15% per year, compounded annually, for cash flow
below:
End of the
1
2
3
year
Cash flow
2. A machine purchased for 45,000 had depreciable life of years. It will have an expected
salvage value of 5,000 at the end of its depreciable life. Using the sum-of-the-years method,
what is the depreciation amount of the year 3?
-400,000
12,000
12,000
12,000
12,000
Transcribed Image Text:1. Compute the net present value at i=15% per year, compounded annually, for cash flow below: End of the 1 2 3 year Cash flow 2. A machine purchased for 45,000 had depreciable life of years. It will have an expected salvage value of 5,000 at the end of its depreciable life. Using the sum-of-the-years method, what is the depreciation amount of the year 3? -400,000 12,000 12,000 12,000 12,000
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