CLTV Section
A company secured a contract that will result in income payments received of $280,000 today, $400,000 in 2 years and $600,000 in 5 years (these are single or lump sum payments they get). The expenses or outflows will include payments of $10,000 at the beginning of every month for 6 years and a one-time payment (expense) of $50,000 in one year from today. If the cost of money is 17% compounded annually, determine the Net Present Value (NPV) of the contract.
a)What is the PV of the inflows?
b) What is the PV of the outflows?
c) What is the Net Present Value (NPV)?
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here