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Tom decided to buy a new car to be an Uber driver. He calculated the costs and revenues as follows. Please find the results of
Tom decided to buy a new car to be an Uber driver. He calculated the costs and revenues as follows. Please find the results of his business.
Year | Costs | Revenue | Net Flow |
0 | $20000 | $0 | $ |
1 | 5000 | 15000 | |
2 | 5000 | 15000 | |
3 | 5000 | 15000 | |
4 | 5000 | 18000 | |
5 | 5000 | 18000 |
The discount rate is 5% per year. The present value (NPV) of the business is? $
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