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Calculate discount factors from project A . Project A 10% discount Present value Year Cash flow () factor = cash flow () 0 -1500 1

Project A 10% discount Present value Year Cash flow () factor = cash flow () 0 -1500 1 = -1 500 1 +500 0.9091 = + 454.55 2 +800 0.8264 + 661.12 3 +1 000 0.7513 = + 751.30 NPV + 366.97

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