A company is evaluating an investment opportunity with an initial cost of $100,000 and an expected cash
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Question:
A company is evaluating an investment opportunity with an initial cost of $100,000 and an expected cash flow of $30,000 per year for the next 5 years.
Instructions: Calculate the net present value (NPV) of the investment using a discount rate of 10% and determine if the investment is attractive or not.
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0134141084
11th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
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