A report from the marketing department indicates that a new product will generate the following revenue stream: $62,500 in the first year,$89,400 in year two,$136,200 in year three,$128,300 in year four,and $112,000 in year five.If your firm's discount rate is 11% and the cash flows are received at the end of each year,what is the present value of this cash flow stream?

Question

Quizplus · Accepted Answer

CF0 = 0
CF1 = 62,500
CF2 = 89,400
CF3 = 136,200
CF4 = 128,300
CF5 = 112,000
I/YR = 11
NPV = ? = 379,435.35

A Report from the Marketing Department Indicates That a New