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Net returns from an investment are estimated to be $13 000 per year for 12 years. The investment involves an

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Net returns from an investment are estimated to be $13 000 per year for 12 years. The investment involves an immediate outlay of $50 000 and a further outlay of $30 000 after 6 years. The investments are estimated to have a residual value of $10 000 after 12 years. Find the net present value at 20%.
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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End of year PV IN 13 000 1 1 20 12 0 20 13 000 4 439217 57 710 PV OUT 50 000 now 50 000 30 000 l …View the full answer


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Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

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Question Posted: February 26, 2016 04:19:24
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