nour2014 says July 21, 2022 at 9:52 am in 3 years replacement: the second year’s NPV is 5600X0.756=4234 Log in to Reply

John Moffat says July 21, 2022 at 11:10 am 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. 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