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Percy has been asked by his manager to perform an analysis of some business ventures. The first, Zeus Electronics, will cost $400,000 today and another
Percy has been asked by his manager to perform an analysis of some business ventures.
The first, Zeus Electronics, will cost $400,000 today and another $100,000 in one years time, after which the project is expected to generate income of $100,000 every year.
Percy knows that his companys required rate of return for such projects is 10% per annum effective.
Calculate the NPV of Zeus Electronics. Round your answer to the nearest $1000. So if your answer was $123456, input an answer of 123000.
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