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# Year 5% 6% 4 3.546 3.465 5 7% 3.387 3.312 4.329 4.212 4.100 8% 3.993 5.076 4.917 4.767 4.623 Present Value of an Annuity

## Year 5% 6% 4 3.546 3.465 5 7% 3.387 3.312 4.329 4.212 4.100 8% 3.993 5.076 4.917 4.767 4.623 Present Value of an Annuity of $1 at Compound Interest 9% 10% 11% 12% 13% 14% 15% 3.240 3.170 3.102 3.037 2.974 2.914 2.855 3.890 3.791 3.696 3.605 3.517 3.433 3.352 4.486 4.355 4.231 4.111 3.998 3.889 3.784 The company has a project with a 5-year life that requires an initial investment of $220,000, and is expected to yield annual cash flows of $59,500. What is the net present value of the project if the required rate of return is set at 10%? Calculation Steps Present Value of an Annuity of $1 at Compound Interest. Net Present Value = ( $ Note: Round your answer to the nearest whole dollar. What NPV does the previous calculation yield? x ) -

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The information in the image is not relevant to calculating the Net Present Value NPV of the project described The NPV formula considers the present value of future cash flows discounted by the requir...### Get Instant Access to Expert-Tailored Solutions

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