Fin/571
Wiley PLUS Week 6 Assignment
10.14 Net present value: Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires $1,968,450, have a life of five years, and would produce the cash flows shown in the following table. What is the NPV if the discount rate is 15.9 percent?
Year Cash Flow
1 $512,496
2 $242,637
3 $814,558
4 $887,225
5 $712,642
Source: http://www.investopedia.com/calculator/netpresentvalue.aspx
Net Present Value:
$10,037.20
PV of Expected Cash flows:
$1,978,487.20
11.20 FCF and NPV for a project: Archer Daniels Midland Company is considering buying a
new farm that it plans to operate for 10 years. The farm will require an initial investment of $12
million. This investment will consist of $2 m
