How to determine the net present value


Bonavita inc is considering a capital investment proposal that costs 227,500 and has an estimated life of four years and no residual value. The estimated net cash flows are as follows year 1 97500 year 2 80000 year 3 60000 year 4 40000. the minimum desired rate of return for net prsent value analysis is 10%. The present value of $1 at compound interest rates of 10% for 1,2,3,4 is .909, .826, .751,.683 respectively. Determine the net present value

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Accounting Basics: How to determine the net present value
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