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Medi-Med is a not for profit medical clinic. They are buying a new piece of equipment. Med-Med's discount rate is 6%. The net cash flows
Medi-Med is a not for profit medical clinic. They are buying a new piece of equipment. Med-Med's discount rate is 6%.
The net cash flows resulting from the investment in this new piece of equipment would be:
Time 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
-150,000 30,000 30,000 35,000 40,000 50,000
What is the NPV of this piece of equipment?
A.
3,435.11
B.
153,435.11
C.
35,000
D.
3,420.11
E.
none of these
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