I need help to get to this right answer. To calculate the net present value, convert all future and repeated cashflows into present value. Given the following cash flows and an interestrate of 2%, calculate the net present value of the alternative. Roundyour answer to the nearest dollar.Initial Cost: $627Annual Benefit: $78 for 12 yearsSalvage Value: $202 at end of year 12

In economics, present value refers to the current value of a future stream of cash flows. The net…

Answered: To calculate the net present value,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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To calculate the net present value, convert all future and repeated cash flows into present value. Given the following cash flows and an interest rate of 2%, calculate the net present value of the alternative. Round your answer to the nearest dollar.