What is the total present value

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Reference no: EM132018990

Provide the formulas for the following:

1. CFA will be $69,000 in year 4. CFA will be $96,000 in year 5. Interest rate is 10%. What is the total present value?

2. There is an initial investment of $68,000. CFA will be $42,000 in year 2. CFA will be $33,000 in year 3. Interest rate = 8%. What is the net present value?

3. There is an initial investment of $68,000. CFA will be $42,000 in year 2. CFA will be $33,000 in year 3. Interest rate = 8%. What is the profitability index?

4. There is an initial investment of $68,000. CFA will be $42,000 in year 2. CFA will be $33,000 in year 3. Interest rate = 8%. What is the payback period?

Reference no: EM132018990

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