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Case 1. The ABC company will make an initial investment of $ 1 million. Assuming a market interest rate of 5% and cash flow for

Case
1. The ABC company will make an initial investment of $ 1 million. Assuming a market interest rate of 5% and cash flow for 5 years is expected as in the table below:
Year ; Cash Flow
   1       425,000
   2      384,000
   3      321,500
   4      282,500
   5      200,000
Calculate the payback period and the NPV!


2. A company from Germany plans to sell as much as $ 500,000. 

If it is predicted that sales will increase by 10% over the next five years, what is the number of sales over the next five years?

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