I have submitted first attempt. Failed Questions 3, 5, and 6. My email c.crouchley@hotmail.com Would appreciate help in this.
My answer for Q3 ii) PV and NPV calculations
PV = PMT + PMT / (1+ i)^n + PMT / (1+ i)^n + PMT / (1 + i)^n
PV = 20665 + 21307 / (1.075)^1 + 21862 / (1.075)^2 + 575000 / (1.075)^3
PV = 20665 + 19820.46512 + 18917.90157 + 462852.3275
PV = $522,256
NPV = Deduct the original investment of $480,000
NPV = $522,256 – $480,000
NPV = $42,256
Correct formula but timing is incorrect.
Im not sure where Ive gone wrong? Anyone got this sorted?
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