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Given the Following Information, Calculate the Net Present Value: Initial

Question 3

Multiple Choice

Given the following information, calculate the net present value: Initial outlay is $50,000; required rate of return is 10%; current prime rate is 12%; and cash inflows for the next 4 years are $60,000, $30,000, $40,000, and $50,000.


A) less than 0
B) equal to 0
C) $93,542
D) $87,734

Correct Answer:

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