4. The following details are provided by Doppler Company:Initial investment$2,020,00012%Discount rateYearly cash flows1$210,000$414,000$414,000$414,000$210,000234Present Value of $1:10%11%12%13%0.8930.79710.9090.9010.8850.8260.8120.7833.0.7510.7310.7120.6930.6130.6590.5930.6360.56740.6830.6210.543Calculate the NPV of the project.

For cash Outflow The investment year will be considered as 0 year and Present value will be taken as…

4. The following details are provided by Doppler Company: Initial investment $2,020,000 12% Discount rate Yearly cash flows $210,000 $414,000 $414,000 $414,000 $210,000 1 4 Present Value of $1: 10% 11% 12% 13% 1 0.909 0.901 0.893 0.885 0.812 0.797 0.783 0.826 0.751 0.683 0.621 3. 0.731 0.712 0.693 0.659 0.593 0.636 0.567 0.613 0.543 4 Calculate the NPV of the project.

4. The following details are provided by Doppler Company: Initial investment $2,020,000 12% Discount rate Yearly cash flows $210,000 $414,000 $414,000 $414,000 $210,000 1 4 Present Value of $1: 10% 11% 12% 13% 1 0.909 0.901 0.893 0.885 0.812 0.797 0.783 0.826 0.751 0.683 0.621 3. 0.731 0.712 0.693 0.659 0.593 0.636 0.567 0.613 0.543 4 Calculate the NPV of the project.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 9EP

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