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The following details are provided by Doppler Company: Initial investment $2,020,000 Discount rate 12% Yearly cash flows 1 $716,000 2 $650,000 3 $650,000 4 $650,000
The following details are provided by Doppler Company:
Initial investment | $2,020,000 |
Discount rate | 12% |
Yearly cash flows | |
1 | $716,000 |
2 | $650,000 |
3 | $650,000 |
4 | $650,000 |
5 | $716,000 |
Present Value of $1:
10% | 11% | 12% | 13% | |
1 | 0.909 | 0.901 | 0.893 | 0.885 |
2 | 0.826 | 0.812 | 0.797 | 0.783 |
3 | 0.751 | 0.731 | 0.712 | 0.693 |
4 | 0.683 | 0.659 | 0.636 | 0.613 |
5 | 0.621 | 0.593 | 0.567 | 0.543 |
Calculate the NPV of the project.
A.$ 1,015,050
B.$252,500
C.$419,610
D.$959,500
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