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Net present value | Accounting homework help

You are thinking of buying a miniature golf course to operate. It is expected to generate cash flows of $40,000 per year in years one through four and $50,000 per year in years five through eight. If the appropriate discount rate is 10%, what is the present value of these cash flows?


Consider the following information. Determine the present value.

Present Value Interest Rate Number of Periods Future Value
_____ 6% 30 $1,000,000.00


Lang industries spent $20,000 on granular polishing equipment in year 0.

The equipment has a functional life of 10 years, after which it is projected to have no salvage value.

The equipment produces $6,000 in net yearly income.

The projected yearly operating and maintentance costs are $1,000.

Calculate the Net Present Value (NPV) if Lang’s MARR is 15%.

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