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%.
