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Task # 1 Using the NPV equation, derive partial derivatives of NPV with respect to each key variable: net cash flow, discount rate, and time.

Task #1 Using the NPV equation, derive partial derivatives of NPV with respect to each key variable: net cash flow, discount rate, and time. State a key observation for each calculation.
If the base case discount rate is 5%, estimate the NPV impact if interest rates increase the discount rate to 7%. Assume the total time period for the asset is 20 years.

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