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A company considers to invest $ 53000.0 in a new product line that will last for 3.0 years, after which it will be sold for$
A company considers to invest $ 53000.0 in a new product line that will last for 3.0 years, after which it will be sold for$ 6100.0. Depreciation is charged on a straight-line basis. Forecast of operating profits to be generated are as follows. First two years: $ 10600.0, the rest of years it will be $ 14000.0. What is the NPV for this investment if the company expected rate of return is 7%?
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