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Home Depot Inc. has been offered a business deal. If they take this deal, they will receive $7,000 each of the next 5 years (these
Home Depot Inc. has been offered a business deal. If they take this deal, they will receive $7,000 each of the next 5 years (these are years 1, 2, , 5). The business opportunity requires an initial investment of $1,000 at time 0 plus and additional investment of $2,000 at year 4. What is the net present value (NPV) of this deal if the cost of capital is 5%?
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