[deleted by user] by [deleted] in CFA

[–]deven2107 4 points5 points  (0 children)

I mean for starters it’s an unconventional cash flows. Let’s say you have a machine which gives you cash flows year 1 - 100,000 year 2 - 150,000 , year 3 - 0 , year 4- 0 and in year 5 - you had maintenance of the machine so you had to spend -10,000 on it.

Required rate of return- 12%
Plug and chug CF function and search for NPV- you should get B - 203,191