Math Problem Statement
What is the NPV of the following cash flows if the required rate of return is 0.05?
Year 0 1 2 3 4
CF -13,773 1,611 4,739 4,602 4,925 Enter the answer with 2 decimals (e.g. 1000.23).
Solution
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Math Problem Analysis
Mathematical Concepts
Net Present Value (NPV)
Discounted Cash Flows
Time Value of Money
Formulas
NPV formula: NPV = \sum_{t=0}^{n} \frac{CF_t}{(1 + r)^t}
Theorems
-
Suitable Grade Level
Advanced
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