Calculate the NPV using 10% then 15% of the cash flows
Highlight Inc. is considering an investment project with the following cash flows:
YEAR Cash Flow
1 $ 300.00
2 $ 400.00
3 $ 600.00
4 $ 900.00
If
the discount rate is 10% , calculate the present value of these cash
flows What will be the present value if the discount rate is changed to
15%.
If the discount rate is 10%, calculate the present value of these cash flows
What will be the present value if the discount rate is changes to 15%
Calculate the NPV using 10% then 15% of the cash flows.
Remember a comparison like this needs to be summed up to obtain the NPV.
