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1. Suppose ABC Enterprises is planning to invest Rs. 500,000 on machinery. Company has estimated its future cash flows as follows. Year Cash flow

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1. Suppose ABC Enterprises is planning to invest Rs. 500,000 on machinery. Company has estimated its future cash flows as follows. Year Cash flow 1 200,000 2 150,000 3 150,000 4 250,000 5 120,000 Assume that desired rate of return is 10% Calculate the net present value.

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