Question
Please explain steps on this answer! I keep gettingsomething different. NPV =$7,000,000/(1+.07)^1+$7,000,000/(1+.07)^+$7,000,000/(1+.07)^3-$20,000,000 =-$1.629,788 I keep doing this problem on the TI83 calc. and I get anotheranswer. Please help! Will rate high! Please explain steps on this answer! I keep gettingsomething different. NPV =$7,000,000/(1+.07)^1+$7,000,000/(1+.07)^+$7,000,000/(1+.07)^3-$20,000,000 =-$1.629,788 I keep doing this problem on the TI83 calc. and I get anotheranswer. Please help! Will rate high!
Explanation / Answer
NPV =$7,000,000/(1+.07)^1+$7,000,000/(1+.07)^2+$7,000,000/(1+.07)^3-$20,000,000 =-$1.629,788 I think you misssed the value Imarked in red. the above one is very simplecalculation for clear answer you maybreak it into parts and calculate the values and then sumup all of them . I think this will help $7,000,000/(1+.07)^1=6542056.07 $7,000,000/(1+.07)^2=6114071.09 $7,000,000/(1+.07)^3=5714085.13 -$20,000,000 The final answer is-1629787.7017 -$20,000,000 The final answer is-1629787.7017