Calculate the npv of the investment for hospital system

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Problem 1: You work for a lab in a non-profit hospital system. (So, taxes are zero.) A medical measuring device costs $100,000 and is expected to generate $66,000 in cash flow in year 1 (at time t=1) and $60,500 in cash flow in year 2 (at time t=2). The device is expected to be worthless at the end of two years. The appropriate discount rate is 10% per year. Calculate the NPV of the investment.

a. $1,000
b. $2,000
c. $3,000
d. $4,000
e. $5,000
f. $6,000
g. $7,000
h. $8,000
i. $9,000
j. $10,000

Reference no: EM132968197

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