What is the investments net present value

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Your firm is considering an investment that will cost $920,000 today. The investment will produce cash flows of $450,000 in year 1, $270,000 in years 2 through 4, and $200,000 in year 5. The discount rate that your firm uses for projects of this type is 10.25%. What is the investment's net present value?

Answer

$243,211
$217,300
$270,154
$192,369

 

Reference no: EM13265356

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