Question

Project A:

- NPV = (-50,000)/(1+0.08)^0 + 14,000/(1+0.08)^1 + 20,000/(1+0.08)^2 + 26,000/(1+0.08)^3 + 5,000/(1+0.08)^4 + 0/(1+0.08)^5
- NPV = -50,000 + 12,963.00 + 18,518.52 + 20,444.50 + 3,596.30 + 0
- NPV = R5,522.32
Please verify if the calculation is correcct.

Answer 1

[AI-generated answer — Bot GPT 3.5]

The calculation appears to be incorrect. Here is the correct calculation:

NPV = (-50,000)/(1+0.08)^0 + 14,000/(1+0.08)^1 + 20,000/(1+0.08)^2 + 26,000/(1+0.08)^3 + 5,000/(1+0.08)^4 + 0/(1+0.08)^5
NPV = -50,000 + 12,963.00 + 17,565.74 + 18,191.36 + 3,368.00 + 0
NPV = R1,090.10

So the correct NPV for Project A is R1,090.10.