Harvey wants to determine the net present value for a proposed capital investment.He has determined the desired rate of return,the expected investment time period,a series of cash inflows of equal amount,the salvage value of the investment,and the required cash outflows.Which of the following tables would most likely be used to calculate the net present value of the investment?

Question

Quizplus · Accepted Answer

To calculate the net present value (NPV) of an investment, Harvey would use the "Present value of annuity" table for the series of equal cash inflows and the "Present value of a lump sum" table for the salvage value of the investment. The annuity table helps in calculating the present value of regular cash inflows over the investment period, while the lump sum table is used for calculating the present value of the salvage value expected at the end of the investment period.

Harvey Wants to Determine the Net Present Value for a Proposed