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An upfront investment costs $10,000 but will return $1,500 in annual cashflows for 10 years. Your desired rate of return on the investment is 8%.
An upfront investment costs $10,000 but will return $1,500 in annual cashflows for 10 years. Your desired rate of return on the investment is 8%. What is the net present value of the investment (small differences may exist due to rounding)? Use the TVM Calculation Template in Excel to calculate.
Multiple Choice
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$65
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$10,000
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$250
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$115
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