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Consider the following cash flow for an investment: Year 0 2 3 4 -10001-2500 250 23.00 2500-200 -25,00 50,000 C-100,000 -25,000 -25,000 -25,000 -25,000 I-25,000
Consider the following cash flow for an investment: Year 0 2 3 4 -10001-2500 250 23.00 2500-200 -25,00 50,000 C-100,000 -25,000 -25,000 -25,000 -25,000 I-25,000 -25,000 C: Cost, I: Income, L: Salvage Value At a discount rate of 10%, the NPV for this project is $37,105 (check this yourself). Calculate the NPV assuming a 25% increase in the annual income
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