Assume that any expenditures or revenues

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Reference no: EM131920333

Your organization is considering a project to develop a new SaaS messaging service with an expected lifetime of six years. Initial development is estimated to cost $2,000,000 in year 1, and the product is expected to produce steady net revenues of $1,000,000 per year in years 2 through 7, Finance has told you to assume an annual discount rate of 10%. What is the expected NPV of this project? Assume that any expenditures or revenues are realized at the end of their assigned years. Show your work for partial credit.

Reference no: EM131920333

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