show all work show all work SolutionYes It is profitable - Since NPV i.docx
1. show all work
show all work
Solution
Yes It is profitable , Since NPV isPositive
Year cash flow Calculation present value
0 -500000 =-500000/1.10^0 (500,000.00)
1 200000 = 200000/1.10^1 181,818.18
2 300000 = 300000/1.10^2 247,933.88
3 200000 = 200000/1.10^3 150,262.96
4 300000 = 300000/1.10^4 204,904.04
Net Present Value = 284,919.06