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Q3. Calculate the Net Present Value of a project which requires an initial investment of $200000 and it is expected to generate a cash inflow

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Q3. Calculate the Net Present Value of a project which requires an initial investment of $200000 and it is expected to generate a cash inflow of $25000 each month for 12 months. Assume that the salvage value of the project is zero. The target rate of return is 12% per annum. Write the formula and calculate NPV. Justify the result

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