Question: ABS Ltd starts a new project that has a initial investment of $900,000, The estimated life of the project is 5 years. Market expected rate

ABS Ltd starts a new project that has a initial investment of $900,000, The estimated life of the project is 5 years. Market expected rate of return is 8%

Year

Annual Profits

1

$100,000

2

$200,000

3

$360,000

4

$480,000

5

$510,000

Calculate the Net Present Value. (Show your calculations and Formulas used)

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