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- Fill in the missing pieces (parts A through L) in the table to complete the NPV and annual budget analysis (24 points or 2 points apiece).
Income/ Costs | Pre-tax Amount | After-tax Amount | Time | Discount Rate | P.V. Factor | Present Value | Annual After-taxa | Annual Pre-taxb |
Revenue | $63,750 | | 1-10 | 0.095 | | $280,191.36 | | $63,750 |
Labor | -17,500 | | 1-10 | 0.095 | | | | |
Capitalc | | | | | | -195,223.51 | -$31,092.50 | |
NPV | | | | | | | | |
- After-tax annual amount = PV(i/(1-(1+i)-n)) = 1/(PV Factor). b. Pre-tax annual amount = (After-tax annual amount)/(1-m). c. From previous budget.
Do NOT worry about number formatting (i.e. just type in the number), but DO round all answers to two (2) places to the right of the decimal.
Is the Investment profitable?
Answer & Explanation
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