Davis Chili Company is considering an investment of $50,000, which produces the following inflows: ...
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Finance
Davis Chili Company is considering an investment of $50,000, which produces the following inflows:
| Year | Cash Flow | ||
| 1 | $ | 22,000 | |
| 2 | 21,000 | ||
| 3 | 18,000 | ||
Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.
A. Determine the net present value of the project based on a zero percent discount rate.
B. Determine the net present value of the project based on a 10 percent discount rate. (Do not round intermediate calculations and round your answer to 2 decimal places.)
C. Determine the net present value of the project based on a 18 percent discount rate. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.)
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