Investment Decision Duncombe Village Golf Data Analysis Chapter

Total Length: 313 words ( 1 double-spaced pages)

Total Sources: 2



Using values found in a table of factors for calculating the present value of a dollar; the periods one through four have the following present value factors:

Year One= .9259

Year Two= .8573

Year Three= .7938

Year Four= .7350

Next these factors are multiplied individually by the net cash flow generated by the investment in each period.

Year One= $500,000

Year Two= $450,000 Year Three= $350,000

Year Four= $320,000

The multiplication calculation reveals the discounted cash flow values:

Year One= $500,000*.

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9259= $462,950

Year Two= $450,000* .8573= $385,785

Year Three= $350,000* .7938= $277,830

Year Four= $320,000*.7350= $235,200

The total sum of the cash flows net present value is $1,361,765; as such the net present value as compared to the overall investment of $1,200,000 is positive $161,765, and therefore the projected rate of return on this investment is greater than the eight percent cost of.....

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https://www.aceyourpaper.com/essays/investment-decision-duncombe-village-golf-42329