Question: Compute the net present value (NPV) for an investment project with an initial outlay of $500,000 and expected cash flows of $200,000 per year for

Compute the net present value (NPV) for an investment project with an initial outlay of $500,000 and expected cash flows of $200,000 per year for 5 years, using a discount rate of 10%. Discuss the significance of NPV as a measure of investment profitability and its applications in capital budgeting decisions.

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