question archive The cash flow from today to 4 years into the future looks likes, -200,000, 72000,72000,72000,102000

The cash flow from today to 4 years into the future looks likes, -200,000, 72000,72000,72000,102000

Subject:FinancePrice:2.86 Bought30

The cash flow from today to 4 years into the future looks likes, -200,000, 72000,72000,72000,102000. Assuming a WACC of 10%, what is the NPV?

A. -18109.42

B. -17502.42

C. 15102.56

D. 36405.56

E. 48720.7

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Statement showing NPV      
Particulars Time PVf 10% Amount PV
Cash Outflows                                    -                                                          1.00                                          (2,00,000.00)        (2,00,000.00)
PV of Cash outflows = PVCO              (2,00,000.00)
Cash inflows                               1.00                                                    0.9091                                                72,000.00              65,454.55
Cash inflows                               2.00                                                    0.8264                                                72,000.00              59,504.13
Cash inflows                               3.00                                                    0.7513                                                72,000.00              54,094.67
Cash inflows                               4.00                                                    0.6830                                            1,02,000.00              69,667.37
PV of Cash Inflows =PVCI                2,48,720.72
NPV= PVCI - PVCO                      48,720.7
So correct answer is E)48720.7    

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