Results 1 to 2 of 2

Math Help - 3 year Net Present Value Question

  1. #1
    Newbie
    Joined
    Feb 2010
    Posts
    6

    3 year Net Present Value Question

    Building costs $400,000. Produces inflow after operating costs of $100,000 in year 1, $200,000 in year 2, and $300,000 in year 3. Opportunity cost of capital is 12%. What is the NPV? Thanks!
    Follow Math Help Forum on Facebook and Google+

  2. #2
    MHF Contributor
    Joined
    Aug 2007
    From
    USA
    Posts
    3,111
    Thanks
    2
    This really is the very simplest of NPV problems. I sincerely hope youare just trying to get someone else to do your homework, because if you're truly struggling with this problem you simply MUST go have a very honest talk with your academic advisor. This class is not working for you.

    If i = 0.12, then v = 1/(1+i)

    NPV = -400000 + 100000v + 200000v^2 + 300000v^3

    There are several ways to add these up, but with only four terms, why bother.
    Last edited by TKHunny; February 14th 2010 at 10:14 PM.
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Replies: 2
    Last Post: February 3rd 2013, 07:48 AM
  2. Replies: 3
    Last Post: November 12th 2011, 11:57 AM
  3. Replies: 2
    Last Post: August 2nd 2011, 12:13 AM
  4. Convert Annuity from 5 year periods to 1 year
    Posted in the Business Math Forum
    Replies: 0
    Last Post: March 29th 2010, 09:25 PM
  5. Present value question!
    Posted in the Business Math Forum
    Replies: 4
    Last Post: January 30th 2008, 07:24 AM

Search Tags


/mathhelpforum @mathhelpforum