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Net Present Value $($NPV$)$: NPV $=P-I$

The difference between the present value of future cash flows and the initial investment outlay.

Use the information in $($a$)$ to calculate NPV$.$

Use the information in $($b$)$ to calculate NPV$.$ Then adjust the amounts and recalculate NPV$.$

Use the information in $($c$)$ to calculate the initial investment. $I=P-NPV$

Review the "How to Assess Cash Flows and Calculate Net Present Value" example in the text.