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Initial investment of $100,000 in a new medical equipment. Interest Rate 10% (Borrowed money from a bank). Item Year 0 Year 1 Year 2

 

 

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Initial investment of $100,000 in a new medical equipment. Interest Rate 10% (Borrowed money from a bank). Item Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Investment 100,000 Expected Cash Flow 20,000 30,000 30,000 40,000 50,000 PV Factor (1+r) DCF or PV -100,000 PV (Yr. 1 to 5) + Less Investment: NPV

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