A project produces annual net income of $68,200, $17,800 and $10,900, 18,000 for the last two years
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Question:
A project produces annual net income of $68,200, $17,800 and $10,900, 18,000 for the last two years over its five-year life, respectively. The initial cost is $100,000, which is depreciated straight-line to a zero book value over three years. The required rate of return is 11 percent, identify the NPV.
Expert Answer:
To calculate the Net Present Value NPV of the project we need to discount the cash flows to their pr... View the full answer
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