Two young entrepreneurs want to invest $150,000 in a restaurant. Their business plan shows that the restaurant

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Two young entrepreneurs want to invest $150,000 in a restaurant. Their business plan shows that the restaurant will generate $40,000 in cash from year one to year five and $50,000 from year 6 to year 10. They want to earn at least 20%. Use this information to calculate
(a) The present value,
(b) The net present value,
(c) The internal rate of return. Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...
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