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corie corie
wrote...
Posts: 767
6 years ago
Sally's Fitness is considering installing new exercise equipment.  If she does so, she expects the payment stream in the table below before the equipment must be replaced.  To finance the equipment purchase, she must take out a loan at 9%.  Does the equipment investment offer a positive net present value?

Year   Cashflow   Present Value
0   -$12,500   
1   $4,000   
2   $4,000   
3   $4,000   
4   $4,000   
5   $4,000
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
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CanihCanih
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Posts: 463
6 years ago
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corie Author
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6 years ago
You make an excellent tutor!
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Yesterday
this is exactly what I needed
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2 hours ago
Thank you, thank you, thank you!
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