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Compute the net present value (NPV) for an investment project with an initial outlay of $250,000 and expected cash flows of $80,000 per year for

  • Compute the net present value (NPV) for an investment project with an initial outlay of $250,000 and expected cash flows of $80,000 per year for 5 years, using a discount rate of 12%. Discuss the significance of NPV as a measure of investment profitability and wealth creation potential, considering the time value of money.

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