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(Ignore income taxes in this problem.) Sam Weller is thinking of investing $120,000 to start a bookstore. Sam plans to withdraw $35,000 from the business
(Ignore income taxes in this problem.) Sam Weller is thinking of investing $120,000 to start a bookstore. Sam plans to withdraw $35,000 from the business at the end of each year for the next five years. At the end of the fifth year, Sam plans to sell the business for $130,000 cash. At a 12% discount rate, what is the net present value of the investment? (Round your 'PV factors' to three decimal places.) (Use Exhibit11b-1, Exhibit11b-2) rev: 12_14_2012,12_21_2012, 01_14_2015_QC_CS-3712
$126,175
$73,710
$79,885
$120,000
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