Principles of Corporate Finance

(Barry) #1

Present Values


Example
Assume that the cash flows
from the construction and sale
of an office building is as
follows. Given a 7% required
rate of return, create a present
value worksheet and show the
net present value.


150 , 000 100 , 000 300 , 000


Year 0 Year 1 Year 2
− − +
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