Time value of money what will be the net present value

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Reference no: EM13803874

Time Value of Money- Deli Case

The answer is already given, so step by step on arriving on that answer is required

Christina hopes to open a Deli in 2015.The initial investment will be $85,000. She expects that that the Deli will generate the positive cashflow as indicated below.If she canborrow money at 7% per year, what willbe theNet Present Value? Use 7% as the discount rate.

Year	Cash Flow
2016	$22,000
2017	$24,000
2018	$29,000
2019	$30,000
2020	$31,000
2021	$27,000
2022	$22,000
2023	$15,000
2024	$12,000
Answer:	$72,134.42

Reference no: EM13803874

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