Use the present value tables included in Appendix B of your textbook to compute the NPV of four $25,000 payments received in years 0, 1, 2, and 3 at a 5% discount rate.

Question

Quizplus · Accepted Answer

The NPV is calculated by discounting each payment to its present value and summing them up. Using a 5% discount rate, the present values are: Year 0: $25,000, Year 1: $23,809.52, Year 2: $22,675.68, Year 3: $21,576.29. Adding these gives $93,075.

Use the Present Value Tables Included in Appendix B of Your