Calculate the NPV of a project that has an outlay of $300,000 and has annual net cash flows of $80000 per year over 6 years. The project has a salvage value (disposal value) of 10% of its original value. The required rate of return for projects of similar risk is 0.11. Note that the rate of return is quoted as a decimal, e.g. 12% p.a. is written as .12 .  

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To calculate the net present value NPV of the project we need to discount the cash flows to their pr... View the full answer