The Maxwell School

Syracuse University

Syracuse University

Suppose a car costs $20,000 in period 0, requires $1,000 of fuel in each of years 1-5 and is sold at the end of year 5 for $12,000. If the interest rate is 5%, what is the net present value of owning and driving the car?

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URL: https://wilcoxen.maxwell.insightworks.com/pages/3071.html

Peter J Wilcoxen, The Maxwell School, Syracuse University

Revised 08/17/2016

URL: https://wilcoxen.maxwell.insightworks.com/pages/3071.html

Peter J Wilcoxen, The Maxwell School, Syracuse University

Revised 08/17/2016