You are considering an investment that will cost $15,000 and generate returns of $4,000 at the end of year 1, $5,000 at the end of year 2, $6,000 at the end of year 3 and $3,000 at the end of year 4. Calculate the NPV of the investment using a cost of capital of j,=6.0%. Round your answer to the nearest dollar. Your Answer: Answer

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
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You are considering an investment that will cost $15,000 and generate returns of
$4,000 at the end of year 1, $5,000 at the end of year 2, $6,000 at the end of year 3
and $3,000 at the end of year 4.
Calculate the NPV of the investment using a cost of capital of j1=6.0%. Round your
answer to the nearest dollar.
Your Answer:
Answer
Transcribed Image Text:You are considering an investment that will cost $15,000 and generate returns of $4,000 at the end of year 1, $5,000 at the end of year 2, $6,000 at the end of year 3 and $3,000 at the end of year 4. Calculate the NPV of the investment using a cost of capital of j1=6.0%. Round your answer to the nearest dollar. Your Answer: Answer
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