Question
Calculate the NPV of a project that has an outlay of $300,000 and has annual net cash flows of $80000 per year over 7 years.
Calculate the NPV of a project that has an outlay of $300,000 and has annual net cash flows of $80000 per year over 7 years. The project has a salvage value (disposal value) of 10% of its original value. The required rate of return for projects of similar risk is 0.11. Note that the rate of return is quoted as a decimal.
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Personal Finance
Authors: Jeff Madura
5th edition
132994348, 978-0132994347
