What is the npv at a 10 percent cost of capital

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Reference no: EM131881671

An investment being considered by ETBucs Company requires an initial outlay of $1 million at time 0 and an additional outlay of $500,000 at the end of five years.

The investment will provide returns of $200,000 a year for the first five years and $300,000 a year for the second five years. These cash flows will be received at midyear.

At the end of ten years, the investment will be sold for salvage of $250,000. What is the NPV at a 10% cost of capital?

Reference no: EM131881671

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