Wes is considering investing in a new printing press for his printing business. The
purchase price of the printing press is $225,000 and he expects to be able to sell it
for $150,000 at the end of five years. During the five-year period, he expects the
equipment to increase her annual cash flows by $45,000 (year 1), $32,000 (year 2),
$24,000 (year 3), $16,000 (year 4), and $10,000 (year 5). If his opportunity cost is 7%,
what is the net present value (NPV) of this investment?
Give this one a try later!
, $-9,118.62
225,000+/- CFj
45,000 CFj
32,000 CFj
24,000 CFj
16,000 CFj
160,000 CFj
i=7%
solve NPV
John would like to purchase his friend's action figure collection in eight years for
$12,000. His father will give him $2,000 toward the purchase of the collection at that
time. John wants to save monthly for the balance of the purchase price. What is the
approximate required monthly payment at the beginning of each month to
accumulate the $12,000, including his father's gift, at an assumed interest rate of 5%?
Give this one a try later!
$84.58
Begin mode
n=8*12=96
i=5%/12= 0.4167
FV=10,000 (12,000-2,000)
solve pmt
You've determined the net present value (NPV) of your client's investment to be
$32,500. If your client's required rate of return is 8%, which of the following is most
likely to be the investment's internal rate of return (IRR)?
7%
8%
9%
purchase price of the printing press is $225,000 and he expects to be able to sell it
for $150,000 at the end of five years. During the five-year period, he expects the
equipment to increase her annual cash flows by $45,000 (year 1), $32,000 (year 2),
$24,000 (year 3), $16,000 (year 4), and $10,000 (year 5). If his opportunity cost is 7%,
what is the net present value (NPV) of this investment?
Give this one a try later!
, $-9,118.62
225,000+/- CFj
45,000 CFj
32,000 CFj
24,000 CFj
16,000 CFj
160,000 CFj
i=7%
solve NPV
John would like to purchase his friend's action figure collection in eight years for
$12,000. His father will give him $2,000 toward the purchase of the collection at that
time. John wants to save monthly for the balance of the purchase price. What is the
approximate required monthly payment at the beginning of each month to
accumulate the $12,000, including his father's gift, at an assumed interest rate of 5%?
Give this one a try later!
$84.58
Begin mode
n=8*12=96
i=5%/12= 0.4167
FV=10,000 (12,000-2,000)
solve pmt
You've determined the net present value (NPV) of your client's investment to be
$32,500. If your client's required rate of return is 8%, which of the following is most
likely to be the investment's internal rate of return (IRR)?
7%
8%
9%
