Answer:
$77,348.98
Step-by-step explanation:
The net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-180,000
Cash flow each year from year 1 to 9 = $40,000
Cash flow in year 10 = $40,000 + $30,000 = $70,000
I =10%
NPV = $77,348.98
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you