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You are making a $120,000 investment and feel that a 17% rate of return is reasonable, given the nature of the risks involved. You expect
You are making a $120,000 investment and feel that a 17% rate of return is reasonable, given the nature of the risks involved. You expect to receive $48,000 in the first year, $54,000 in the second year, and $76,000 in the third year. You expect to pay out $12,000 as a disposal cost in the fourth year. What is the net present value of this investment given your expectations?
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