Question: Define Net Present Value (NPV). Perform a financial analysis for a new IT Project which requires an initial investment of $40,000, but it is expected
Define Net Present Value (NPV). Perform a financial analysis for a new IT Project which requires an initial investment of $40,000, but it is expected to generate revenues of $20,000, $30,000 and $25,000 for the first, second and third years respectively. The target rate of return is 12%. Write the formula and Calculate the Net Present Value (NPV). Justify your result based on the financial analysis.
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