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Assume the firm invests $500,000 in period zero. They expect to have cash inflows of $125,000 in each of the next five years. The salvage
Assume the firm invests $500,000 in period zero. They expect to have cash inflows of $125,000 in each of the next five years. The salvage can be sold for $10,000 at the end of year five. The discount rate is 16 %. What is the net present value?
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