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Calculate the NPV for a Project Costing $200,000 and Providing

Question 116

Essay

Calculate the NPV for a project costing $200,000 and providing $20,000 annually for 40 years.The discount rate is 8 percent.By how much would the NPV change if the inflows were reduced to 30 years? Describe the implications of both answers.

Correct Answer:

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NPV = $20,000 blured image - $200,000
= $20,000 [12....

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