Time value of money what will be the net present value

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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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