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At the end of five years the working capital will be released and may be used elsewhere by Lester. Lester Company uses a discount rate
At the end of five years the working capital will be released and may be used elsewhere by Lester. Lester Company uses a discount rate of 11%. Should the contract be accepted?
Sales Revenue 750,000
Cost of Parts Sold (400,000)
Salaries shipping etc. (270,000)
Annual Net Cash Inflow 80,000
I cannot figure out how to calculate the NPV factor for years 1-5 (It is indicated as 3.696) Please show me how to calculate the NPV factor for each year.
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