Math question...?

Question

What is the NPV of an investment that costs 75000 and has a salvage value of 45000? The annual profit from the investment is 15000 each year for 5 years. The cost of capital at this risk level is 12%

Answer 1

Not sure if this is for fun or for a homework question, or for a business idea, but if you just use your financial calcuator, it will be able to do all the math for you using the cash flow buttons.

Using -75k, 15k, 15k, 15k, 15k, 60k as the cash flows ans required rate of return of 12%

But the NPV is 4605.85

IRR = 13.94%