Assume the yearly cash ows from a $50,000, 2-year investment is $30,000 at the end of year

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Assume the yearly cash ﬂows from a $50,000, 2-year investment is $30,000 at the end of year 1 and $40,000 at the end of year 2, and the discount rate is 10%. What is the NPV of this investment?

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Corporate Finance

ISBN: 978-0077861759

10th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: May 22, 2023 03:24 AM

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Assume the yearly cash ows from a $50,000, 2-year investment is $30,000 at the end of year

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To calculate the Net Present Value NPV of the investment we need to discount each ca... View the full answer

Corporate Finance

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