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What is the net present value of the data

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Question a: What is the Net Present Value of this data below? Could you help me understand by year?

Discount Rate: 12%

Year 0 -7,000,000 (initial investment)

Year 1 -42,733

Year 2 -121,460

Year 3 -740,944

Year 4 762,725

Year 5 1,719,693

Year 6 1,995,930

Year 7 2,284,549

Year 8 3,121,335

Year 9 3,948,831

Year 10 4,411,100

Question b: How far off your estimates of revenues and expenses can be before your decision would change? What is MACRS and straight line depreciation, and is there a formula to calculate?

 

Reference no: EM132472684

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