nour2014 saysJuly 21, 2022 at 9:52 amin 3 years replacement: the second year’s NPV is 5600X0.756=4234Log in to Reply
John Moffat saysJuly 21, 2022 at 11:10 amNo it is not.I do not know where you are getting 5,600 from.There is an outflow at time 2 of 9,600 and so the PV is 9,600 x 0.756 = $7,258 as per the answer.Log in to Reply
nour2014 says
in 3 years replacement:
the second year’s NPV is 5600X0.756=4234
John Moffat says
No it is not.
I do not know where you are getting 5,600 from.
There is an outflow at time 2 of 9,600 and so the PV is 9,600 x 0.756 = $7,258 as per the answer.
abiola15 says
57384/0.870 should be 65,959 not 66,476