Chapter 1
As a first step, calculate the PV of the cash flows (at 10.5%): cf0 = 0, Cf1=1700, f1
= 1, Cf2=1800, f2 = 1, cf3 = 0, f3 =1, cf4 = 2000, f4 = 1, NPV =4354. 1026.
As a first step, calculate the PV of the cash flows (at 10.5%): cf0 = 0, Cf1=1700, f1
= 1, Cf2=1800, f2 = 1, cf3 = 0, f3 =1, cf4 = 2000, f4 = 1, NPV =4354. 1026.