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